Monday 19 February 2018

Profits halved to €3m at CBRE's Irish arm despite solid market

CBRE Ireland managing director Enda Luddy
CBRE Ireland managing director Enda Luddy
John Mulligan

John Mulligan

Profits at the Irish arm of international property firm CBRE halved to €3m last year as the market saw lower levels of asset and loan transactions and Nama continued to deleverage.

Turnover at the Irish CBRE unit fell 19pc to €24.3m in 2016, newly-filed accounts for the business show.

CBRE noted in the accounts that 2016 continued to see good levels of activity in the domestic commercial property market "but at a lower level of both asset and loan transactions than in recent years as Nama and various financial institutions neared completion of the process of deleveraging".

CBRE's Irish operation employed 129 people at the end of 2016, up from 125 at the end of 2015. But the wage bill for staff fell last year to €12.1m from €14.7m a year earlier. That staff number includes directors.

The accounts show that "other emoluments" that were received by the directors at the firm totalled €1.14m.

That compared to €1.8m they received the previous year.

The Irish unit has five directors, including managing director Enda Luddy.

CBRE provides a wide range of commercial property services to Irish and international clients.

CBRE has been involved in a number of high-profile transactions this year in Ireland. Earlier this month, it emerged that German institutional investment firm Triuva had tabled a €164m bid for No 1 The Landings, the first of five office blocks being developed by Ballymore in conjunction with Oxley in Dublin's docklands.

CBRE is the joint selling agent for the property, along with Knight Frank. CBRE is also the selling agent for the building that's home to the high-profile Dublin restaurant Shanahan's on the Green. The Georgian building is reported this week to have gone sale agreed at €4.5m. The building was sold on the instructions of a receiver.

This year has proved busy on the commercial property front, especially in Dublin.

This week, US-headquartered real estate giant Kennedy Wilson said it has signed up global recruitment group Indeed as a tenant at its Capital Dock development in Dublin's docklands.

The deal will see Indeed occupy the entirety of buildings 100 and 300 Capital Dock on a 20-year lease. The company's operations at the docklands campus will extend across 216,000 sq ft.

Kennedy Wilson's agreement of the lease with Indeed follows the announcement earlier this year of its forward-funding sale agreement of the 130,000 sq ft, 200 Capital Dock building to US investment banking giant JP Morgan.

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