Dublin, 1st April 2021 - Property consultants CBRE Ireland have today released figures for the volume and value of investment sales completed in the Irish market during the first three months of 2021. According to the property consultants, in total, more than €1.2 billion of commercial property transactions with a value of more than €1 million traded in Ireland in the first quarter of the year in 32 individual transactions. Interestingly, this volume of spend in the quarter is higher than the entire years of 2009, 2010, 2011 and 2012 combined.
According to CBRE, this is a very strong result considering the fact that the market has been in full lockdown for the entire quarter and much of last year. The result is considerably higher than the long-term average investment spend in Q1 of approximately €800 million and on par with the volume of trades in what was a bumper first quarter in Q1 2020. The largest transactions to sign in the quarter was a large residential forward fund transaction that extended to more than €450 million and the Project Tolka office investment sale for approximately €290 million. The residential sector accounted for 59% of investment spend in the quarter. Meanwhile, 32% of spend in Q1 was accounted for by office investments with industrial transactions accounting for a further 7% of spend. CBRE were involved in several of the largest transactions completed in Q1, namely the sale of the Marina Village residential investment in Greystones, Co. Wicklow for more than €64 million and the sale of the Irish element of the Mountpark industrial portfolio as well as providing buy-side advice on the residential forward funding transaction.
Kyle Rothwell, Head of Capital Markets at CBRE said, “Demand for core assets in the Irish market has remained strong during the opening months of the year, albeit with the country still in the midst of a full lockdown and a stringent travel ban remaining in force, transactional activity continues to be hampered to some degree. Many sales processes that were due to commence in Q1 have been delayed albeit there is still considerable activity underway off-market, particularly in the multifamily sector. Despite some uncertainty about the ‘future of the office’, which is unlikely to dissipate until such time as the majority of office workers return to their buildings later this year, the office sector remains the preferred investment choice for institutional investors in Europe with most institutional investors remaining focussed on securing core and core-plus opportunities in this sector. Demand for industrial and multifamily sector opportunities is also particularly strong while demand for retail is predominately focussed on long income opportunities from convenience retailing, grocery and retail warehousing. Prime yields remain stable in all sectors with both multifamily and industrial trending keener in recent months”.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 150 employees, we work with occupiers, investors and developers of office, industrial and logistics, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com