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Irish commercial property sales set to top 2006 bubble peak
By Michael Hennigan, Finfacts founder and editor
Oct 1, 2014 - 5:42 AM
The total amount of capital invested in Irish commercial property was higher in the third quarter than any other quarter in history, according to Jones Lang LaSalle's (JLL) investment property report for Q3 2014. In the last 3 months, €1.15bn of property was purchased by investors, with total volumes for the year-to-date now up to almost €3bn the report says that with one quarter left in the year, "we are just €600m behind the peak of the investment market in 2006, when €3.6bn of Irish property was traded."
The crazy year of 2006 was also a record one in the residential market when 93,000 housing units were built.
Hannah Dwyer, head of research at JLL, said: "It has been a very busy quarter for investment, with a record level of capital invested in Irish real estate. Volumes for the last 3 months total €1.15bn, which exceeds the previous quarterly record from Q3 2006 by €90m. Total volumes have been boosted by 4 large portfolio sales which were in excess of €100m each (Redwood, Orange, Acorn and Salix). Combined, these accounted for 62% of volumes this quarter".
The largest sale of the quarter was The Redwood Portfolio which sold for €215m.
Dwyer also added that "This momentum will continue into the final quarter of the year, with a further €1bn worth of assets expected to trade before the year-end. This will push total volumes to €4bn for 2014, which would be a record year for investments. We are aware of a number of large-scale portfolios and single asset sales that are either currently on the market, or expected to come to the market shortly. Investor interest from overseas and domestic players remains deep, with multiple bidders on most assets that come to the market. With loan sales added, volumes are likely to reach €5bn for the year".
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