Ireland Investment and Funding Q1 2023

Q1 Highlights

• An undertone of issues in the global banking sector has set the backdrop to investment markets in recent weeks

   

• Tighter credit conditions and wider bid-ask spreads have made certain deals difficult to structure in the current market environment

   

• Notwithstanding these factors, the Irish market has moved on with unexpected venom. Big-ticket deals completed in Q1,  across sectors, and pricing expectations moved closer together

   

• Total investment spend in Q1 was €623 million, across 26 transactions. Notably, total spend was down just 18% versus Q1 2022 a reasonable result given the prevailing statement

   

• Three transactions with an individual sale price of c. €100 million or greater completed in Q1. This is in-line with the long-term quarterly average over the last ten years

   

• Equity-driven investors have come to the fore in this market and have executed transactions when other parties cannot. This cohort of investors will continue to be active through 2023

   

• Prime yields on the core sectors of office, industrial and retail appear to be closer to some stabilisation, albeit pricing in all sectors remains trending ‘weaker’