CUCKOO funds have deployed more than €1.3bn this year to buy a swathe of property portfolios and new apartment developments off plan, mainly in Dublin.
The quarterly commercial property report by Cushman & Wakefield says institutional investors have spent €638.2m in the first nine months of the year buying residential assets, including last month’s €52m sale of a 214-apartment portfolio to Chicago-based Heitman Capital.
The report says these global property companies also have struck deals totalling €697.6m to acquire apartment developments still under construction, with most not due for completion until 2020 or beyond.
The biggest deals this year include the €175.5m paid by US property company Greystar to Singapore-based developer Oxley for the 268-apartment Dublin Landings development on North Wall Quay, and the €94m paid by Starwood Capital unit Urbeo to Cairn Homes for The Quarter at CityWest.
Jonathan Hillyer, investments director at Cushman & Wakefield, said the European Central Bank's rock-bottom interest rates meant that “real estate returns continue to look attractive to fund managers across Europe, with Dublin remaining as a key city”.
“Lack of available investment opportunities across the continent remains a constraint in the marketplace which should see continued robust pricing at least in the short term,” Mr Hillyer said.