Dublin offices drive Q2 investment
According to the latest quarterly report from BNP Paribas Real Estate, the continuing fall-off in the number of large commercial property assets being offered for sale in the Irish market saw turnover of €278 million recorded for the three-month period to the end of June.
While that level of transactional activity was low compared to previous quarters, the head of research at BNP Paribas, Joan Henry, said it reflected a “maturing” of the Irish investment market cycle.
BNP Paribas also said that almost €14 billion of assets traded since the beginning of 2014, resulting in a change of ownership for the vast majority of Dublin’s prime office and retail assets. The lack of larger lot sizes now available to the market, coupled with the arrival of a wider pool of international investors with a preference for assets in the €50m to €100m value range, has seen prime yields plateau, says the company.
About 46% of turnover in the second quarter was accounted for by the top five deals, four of which were for office assets. These sales were: The Park office portfolio in Carrickmines, Dublin 18 (€38.8m); One Grand Parade, Dublin 6 (€23m),;Building 2, South County Business Park, Leopardstown, Dublin 18 (€20.5m); Ericsson Facility, Athlone (€20m); and 42-43 Henry Street, Dublin 1 (€18m).
