Research - 05/09/2019

IIM H1 2019: Marking a significant change investment in the living sectors has overtaken the office sector for the last two half year periods.

At €684.7m investment, primarily in the private rented sector, accounted for 37% of H1 volume.

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At €1.8bn commercial property investment in H1 2019 was in keeping with the five-year H1 average and only 2% lower than the same period of 2018 according to our new research published today.

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At €684.7m investment, primarily in the private rented sector, accounted for 37% of H1 volume. Headline deals included the €285m XVI portfolio of 16 nationwide apartment schemes purchased by IRES REIT and the off-market purchase of 600 buy-to-let homes located in Dublin, Cork and Galway by LRC Group.

Accounting for over a quarter of H1 volume, €509.6m was invested in the office sector, primarily in Dublin. Charlemont Exchange was acquired by Vestas Investment Management for €145m (NIY 4.50%) on behalf of South Korean investors and Citywest Business Park was purchased by Henley Bartra for €105m (NIY undisclosed).

Cork is currently benefitting from both developer and investor interest. At €118.2m investment in the city was 37% above its five-year H1 average. Notably, the two largest deals were for retail assets, with Mahon Point Retail Park purchased by IPUT for €56m (NIY 7.00%) and Castlewest Shopping Centre purchased by Davy Investment Fund Services for €22m (NIY 7.96%).

Donall McCann, Head of UK Regional Capital Markets at Lambert Smith Hampton, said:

“The positive outlook for the Irish investment market remains and overseas buyers are continuing to deploy capital, particularly for prime Dublin assets. With the €1.34 bn sale of Green Reit to Henderson Park Capital completed in August, it is possible that the forecasted that the total for 2019 will surpass the €4.5bn high of 2016.

Investment in both the living and office sectors shows no signs of slowing. Given the level of PRS and build-to-rent development across the country, the living sector will continue to attract investors, both domestic and overseas. While overseas office investors are primarily focused on prime Dublin city centre assets, local investors are looking for value outside of Dublin core.”

 

IIM H1 2019 Infographic

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