Property
Irish commercial property sales in H1 2014 at €1.7bn
By Finfacts Team
Jun 24, 2014 - 4:06 PM

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Westend Retail Park, Dublin 15

Irish commercial property sales  in the first half of the year are at €1.7bn according to Jones Lang LaSalle (JLL). The largest transaction was Project Sapphire, which Green REIT purchased in June. JLL acted for Cosgraves, the vendor for the sale, which totalled €375m and included 3 assets: George’s Quay, George’s Court and Westend Retail Park.

In addition, there have been a number of loan sales, including Project Button (RBS), Project Tower (NAMA) and Project Drive (NAMA) which add up to approximately €2bn. These loans include properties outside of Ireland, but part of these sales can be apportioned to Ireland volumes.

Hannah Dwyer, head of Research said: “There is a large supply pipeline for the second half of 2014, with NAMA, Bank of Ireland and Ulster Bank expected to be the most significant sellers in the next 6 months. The demand for Irish property assets remains strong, with new investors continuing to enter the market. As a result, we expect total volumes for direct and loan sales to hit €4bn this year, which is €600m ahead of the peak in 2006.”

Capital values have continued to increase across all sectors. As pricing for offices has continued to intensify, we have seen interest broaden into other sectors, with some key purchases this quarter for residential, retail and industrial assets. Mixed use, large portfolios also traded strongly. John Moran, managing director added: “As predicted, 2014 has been the year of the portfolio sale, with a large number already sold so far this year. We are increasingly seeing vendors packaging assets together for disposal, instead of individual lot sales. At present, these are achieving a premium from purchasers, with significant interest and competition for these types of assets”


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