Commercial Real Estate Transaction Volumes In Ireland Fall 75% Year-On-Year

Irish commercial property investment volumes for the third quarter plummeted by three-quarters compared with the same period last year, according to real estate agent Colliers, reflecting deep caution in the sector.

While a total of €443M changed hands across 31 transactions during Q3, up 32% on the previous quarter, it is less than half of the long-term quarterly average and considerably lower than the €1.75B total recorded in Q3 2022, Colliers reported in a capital markets snapshot.

The office sector, at €176M, was the top performer in Q3 with 40% of turnover, followed by retail (33%) and industrial and logistics (19%).

Irish investors have been increasingly active, accounting for 43% of the total volume, while French funds including Iroko Zen and Corum Asset Management also completed acquisitions during the quarter, as European investors accounted for 34% of deals.

Key office deals during the period included the €81M office acquisition of George’s Quay, Dublin 2, and the €33.4M purchase of Building F1, The Campus, Cherrywood, Dublin 18, both by Corum Asset Management, plus the €18M acquisition of J5 Plaza, North Park Business Park, Dublin 11, by Iroko Zen.

Davy Real Estate’s €74M acquisition of the Hexagon Portfolio of retail properties, plus the €41M purchase of industrial and logistics units at Airport Business Park and Rosemount Business Park, Dublin 11, by KKR and Palm Capital were the largest deals in those sectors.

The downturn in office deals reflects deep caution in the Dublin market, where a value standoff between buyers and sellers has largely paralysed transactions.

There has been a gradual return in confidence in the retail sector, and Goldman Sachs has put Ireland’s largest shopping centre, the Blanchardstown Centre, up for sale after appointing Eastdil Secured and CBRE to find a buyer earlier this year, according to React News.

The proposed disposal of the west Dublin retail scheme is expected to have a guide price of around €700M.

Goldman Sachs originally acquired the mall for about €750M in December 2020 in a deal with the scheme’s previous owner, Blackstone.

The 1.1M SF Blanchardstown Centre has undergone extensive asset management since its latest acquisition, including the opening of flagship Zara and Flannels stores to replace Debenhams and the debut of Nike’s Unite format.