Commercial property sales set to hit €4 billion this year

Tuesday 24 June 2014 15.56
€800m was invested directly in Irish commercial property over the three months to the end of June
€800m was invested directly in Irish commercial property over the three months to the end of June

Investment in Irish commercial property is heading for levels last seen at the peak of the boom, according to research by Jones Lang LeSalle.

The property consultant's report shows that €800m was invested directly in Irish commercial property over the three months to the end of June.

That comes on top of several hundred million euros worth of loan sales linked to commercial property assets from the National Asset Management Agency and Royal Bank of Scotland, the parent company of Ulster Bank.

One of the largest deals was "Project Sapphire", which Green REIT bought from the Cosgrave Group in June.

The sale totalled €375m and included three Dublin assets - George's Quay, George's Court and Westend Retail Park.

Jones Lang estimates the total value of direct purchases and loan sales linked to commercial property will hit €4 billion this year, €600m ahead of the total for 2006.

It also said that there is a large supply pipeline for the second half of 2014, with NAMA, Ulster Bank and Bank of Ireland expected to be the biggest sellers over the next six months. 

The demand for Irish property assets remain strong, with new investors continuing to enter the market. As a result, we expect total volumes for direct and loan sales to hit €4 billion this year," commented JLL's head of research Hannah Dywer.