Busy autumn in store for Irish property: CBRE

A busy autumn is on the cards for the Irish property investment market with a number of new properties expected to be formally offered for sale over the coming weeks, according to CBRE.

Some of the prime product coming onto the market stem from insolvency proceedings.

CBRE announced in recent days that it has been appointed by insolvency specialist Grant Thornton to sell four-star Burlington Hotel, one of the best known hotels in the Irish capital. CBRE Hotels is suggesting EUR 65 mln to EUR 75 mln as the guideline price range.

Separately, Savills signalled the launch of the sale process for an office building and a development site in Dublin's principal office district. The existing office building at 78 Sir John Rogerson’s Quay (SJRQ), along with an adjoining site, are being offered at a combined guide price in excess of EUR 105 mln.

CBRE said it its bi-monthly report on the commercial property markets in the Republic and in Northern Ireland that July and August were quiet in terms of investment. Just under EUR 140 mln was invested in the Irish investment market during the first half of the year in 12 individual transactions. Eight of 12 investment transactions signed in H1 were to local buyers but overseas buyers accounted for 76% of spend in the period.

Marie Hunt, executive director and head of research at CBRE, said: 'There was considerable pitching activity underway all summer suggesting that a significant number of new properties are to be launched for sale over the coming weeks with a busy Autumn season now in prospect'.

According to CBRE, prime rents and yields in the commercial property sector are now stable.

The report says there are 'firm signs' of prime property values reaching a floor with prime rents and yields showing evidence of stabilisation. However, further slippage in rents and yields for secondary assets continue to impact performance numbers on an aggregate basis. Therefore, while according to the Investment Property Databank (IPD), total returns in the Irish investment market in the first half of 2012 were positive at 1.7%, capital values continued to decline in the period, albeit not as aggressively as in previous quarters. Average values are now down 66% from peak.

Irish investors have continued to sell UK assets over recent months, with 22 Irish investment sales totalling £545 mln (EUR 686 mln) completed in the UK in the first half of 2012 alone.
A busy autumn is on the cards for the Irish property investment market with a number of new properties expected to be formally offered for sale over the coming weeks, according to CBRE.

Some of the prime product coming onto the market stem from insolvency proceedings.

CBRE announced in recent days that it has been appointed by insolvency specialist Grant Thornton to sell four-star Burlington Hotel, one of the best known hotels in the Irish capital. CBRE Hotels is suggesting EUR 65 mln to EUR 75 mln as the guideline price range.

Separately, Savills signalled the launch of the sale process for an office building and a development site in Dublin's principal office district. The existing office building at 78 Sir John Rogerson’s Quay (SJRQ), along with an adjoining site, are being offered at a combined guide price in excess of EUR 105 mln.

CBRE said it its bi-monthly report on the commercial property markets in the Republic and in Northern Ireland that July and August were quiet in terms of investment. Just under EUR 140 mln was invested in the Irish investment market during the first half of the year in 12 individual transactions. Eight of 12 investment transactions signed in H1 were to local buyers but overseas buyers accounted for 76% of spend in the period.

Marie Hunt, executive director and head of research at CBRE, said: 'There was considerable pitching activity underway all summer suggesting that a significant number of new properties are to be launched for sale over the coming weeks with a busy Autumn season now in prospect'.

According to CBRE, prime rents and yields in the commercial property sector are now stable.

The report says there are 'firm signs' of prime property values reaching a floor with prime rents and yields showing evidence of stabilisation. However, further slippage in rents and yields for secondary assets continue to impact performance numbers on an aggregate basis. Therefore, while according to the Investment Property Databank (IPD), total returns in the Irish investment market in the first half of 2012 were positive at 1.7%, capital values continued to decline in the period, albeit not as aggressively as in previous quarters. Average values are now down 66% from peak.

Irish investors have continued to sell UK assets over recent months, with 22 Irish investment sales totalling £545 mln (EUR 686 mln) completed in the UK in the first half of 2012 alone.