Multi-million hotel sales reflect continuing strength of the commercial property sector
The sale yesterday of the Clarion Hotel in Dublin's IFSC for €33m came as NAMA chairman Frank Daly declared the residential property crash to be over.
And while the residential crash may be just coming to an end, commercial property -- at least in Dublin -- has been soaring for months.
NAMA controlled the Clarion, and its purchase by European institutional investor Patron Capital comes amid intense foreign interest in Dublin's commercial property market. Already, a number of trophy assets have been snapped up.
Between them, internet giant Google and US private equity group Blackstone -- the single biggest shareholder in Eircom -- have just agreed to pay a total of €165m to buy four premium Dublin office blocks from NAMA. That's much higher than the €120m the four offices had originally been expected to realise.
Hotels in Dublin have effectively recovered from the economic slump, with last year widely recognised as the best year since the bust for the capital's leisure and business market.
The bailout exit, a strengthening domestic and international economy, and money-seeking investment, mean that hotels and other commercial property will attract continuing interest.
The flurry of activity in the commercial sector in the capital's heartland comes as Dublin was named this week by PwC and Urban Land Institute as the best city in Europe in which to buy commercial property this year.