Property investment deals this year could exceed the €3bn seen in 2020 according to Hannah Dwyer, head of research at JLL Ireland.
Her estimate is based on three factors including an estimate that €650m of sales were seen in the first quarter of 2021 for properties worth more than €1m.
“We are also aware of a number of large-scale opportunities which we expect to trade in the next nine months. It is also dependent on the fact that we continue to see the strong demand levels for Irish real estate that we have seen in the last few years and a resumption of travel and normal business activity,” she added.
Among the most recent deals was AM alpha’s purchase of 76 Sir John Rogerson’s Quay, an eight storey modern office development located in the heart of Dublin’s South Docklands.
It is believed to have generated more than €95m for Targeted Investment Opportunities (TIO), which includes US firm Oaktree Capital, Irish builder Bennett Construction and Nama.
Extending to 92,600 sq ft, Block A is partially let to Rabobank and another tenant is Algebris Investments.
The German-based AM was advised by Savills Ireland. AM sold nearby Riverside II in 2013 to IPUT and also recently acquired Northside Shopping Centre in Dublin.
The largest investment deal in the first quarter was Blackstone’s purchase of the Project Tolka office portfolio for €290m. It included a 74pc interest in the Burlington Plaza office building at Burlington Road, Dublin 4 and The Three Building at 28/29 Sir John Rogerson’s Quay, Dublin 2 for €290 million.
Ms Dwyer said that the total volume of €650min Q1 was “a really steady start to the year for the investment market in Ireland and demonstrates how the sector has continued to be resilient throughout the current pandemic. In terms of sectors, we are continuing to see greatest demand from investors for beds, sheds and meds: PRS, industrial and bio-medical sectors. Looking to 2021, I expect the total volume of deals to return more ‘normal’ averages for a market of Dublin’s size, which is in the region of €3-4bn.”
Multi-family residential are a key part of investment activity according to Marie Hunt of CBRE who reports “strong demand across the spectrum with increasing demand for social leasing in particular.”
Two big tests of multifamily demand will be the sale of the Marlet and LRC portfolios which are priced at over €1bn each.