Why French Investors Can't Get Enough Of Dublin Offices

As some international investors got cold feet over Dublin real estate, value-seeking French funds ignored their peers’ reticence to target the Irish commercial property market, with a spate of deals increasing the influence of French investors in the office sector and beyond.

While overall office investment in Dublin has sagged compared to long-term averages over the past 18 months, French capital has been a significant driver of activity, accounting for roughly a quarter of office investment volumes — including much-maligned secondary offices. 

Arkéa REIM, Corum Asset Management, Atland Voisin and Inter Gestion REIM are among those to have snapped up assets, and their appetite for investment opportunities is now likely to include expanding into new sectors. 

“These SCPIs have shown a particular interest in secondary office buildings with long-term leases, which offer higher yields compared with prime,” JLL Research Director Niall Gargan said, referring to the French sociétés civiles de placement immobilier structure of property funds.

“This strategy aligns well with the SCPI model, as it prioritises stable income distribution to its investors. The appeal of long leases lies in the predictable cash flow they provide, making it easier to forecast and maintain consistent payouts.” 

Since 2017, French SCPIs have invested approximately €1.4B in Ireland across nearly 70 transactions, data from Colliers showed.

Although French SCPIs shifted some of their focus to other jurisdictions in the latter half of 2024, they still accounted for 10% of total commercial real estate spending in the first quarter. Activity increased further in Q2, with French investors representing 14% of overall turnover, Colliers said. 

Gargan added that the Dublin office market offers several “Goldilocks buildings” for these funds, with a notable number of assets featuring long-term leases from tenants like the Office of Public Works and other state bodies, ensuring stable rental income. One example is the Infinity Building in Smithfield, acquired by Corum and leased primarily to the OPW.

These funds aren't exclusively focused on government-backed leases, Gargan said. The Q4 transactions for Block 5 at Waterside Innovation Campus and 5 Parkmore East Business Campus, and on a larger scale, the Q1 acquisition of Central Quay, demonstrated a broader appetite for buildings with private company leases. 

Secondary office assets also present value-add opportunities through renovations, improved management or attracting new tenants, and they can often be acquired on favourable terms.

“While the current focus appears to be on offices, it wouldn't surprise me if French funds begin to diversify into other sectors if the opportunities align with their investment criteria,” Gargan said.

As they become more familiar with the landscape, they might look to leverage their capital and expertise in areas like residential and logistics.

Late last year, a fund managed by French real estate investor Arkéa REIM increased its Irish exposure with office acquisitions in the Waterside Innovation Campus in Citywest, Dublin, and the Parkmore East Business Park in Galway for an undisclosed sum.

The buildings were sold by Fine Grain Property and were the third and fourth Irish acquisitions for the Arkéa-managed SCPI Transitions Europe. During the summer of 2024, it also acquired Plantation House in Dublin and the mixed-use Citypoint in Galway.

“What initially attracted us was the exceptional economic dynamism of both the city and the country,” Arkéa REIM President Yann Videcoq said.

Ireland benefits from solid macroeconomic fundamentals, and Dublin is one of the fastest-growing capitals in Europe, he said, with strong appeal for businesses — particularly in the technology, pharmaceutical and financial sectors. 

He added that the real estate market remains liquid, supported by favourable legal frameworks, which allow for optimised rental conditions. He also cited Ireland’s advantageous tax regime, enhancing net returns for investors, and the absence of currency risk.

“What we particularly appreciate about the Irish market today is the attractive returns. Ireland has experienced a rapid decompression in real estate yields and a sharp fall in price over the last two years, which make for a very interesting entry point,” Videcoq said. 

“There are still good opportunities, especially for agile investors like us with a diversified and pan-European investment strategy. Of course, transaction volumes remain limited, and the supply is highly concentrated in Dublin, but we are considering further investments, including in cities such as Galway and Cork.”

He pointed to office buildings in prime locations, retail parks, especially outside Dublin, as well as hospitality and life sciences among attractive asset types.

Meanwhile, French fund Inter Gestion REIM made its second investment in Ireland last year, paying €16M for a Dublin office and retail property at 21-24 Capel Street. 

Corum has been particularly active. In 2023, it bought the 53K SF Dublin offices of law firm Byrne Wallace Shields for €34M after German investor AM Alpha withdrew.

Corum debuted in Ireland in 2016, and its portfolio now comprises 21 properties with an overall value of circa €575M after it acquired George’s Quay House and the F1 Building in Cherrywood for €81M and €30M, respectively. More recently, it paid about €47.2M for the six-storey, 127K SF Infinity Building.

Another active player is Atland Voisin, which made two investments in Dublin last September, paying about €11M for the 16K SF Kingram House on Dublin’s Fitzwilliam Place, which had been put up for sale among 10 other properties owned by developer Ronan Group Real Estate. 

Atland Voisin also paid €24M for 20 on Hatch, a prime office building on Lower Hatch Street, comprising a six-storey-over-basement office building of 45K SF, with the majority of the space leased to MetLife.

“The deal matched two strategic criteria for us,” Atland Voisin Executive Chairman Martin Jacquesson said. “Firstly, sound, transparent market fundamentals that support long-term income streams, and secondly, genuine portfolio diversification within the euro area.” 

Atland Voisin’s focus is on multilet offices with long-term income streams in Dublin, plus retail parks and hotel assets nationwide.

Those segments combine immediate cash flow with upside potential, offer lot sizes that fit its strategy, and provide tenant diversification across different economic drivers, Jacquesson said.

He said that Ireland — and Dublin in particular — offers an attractive blend of macroeconomic indicators, including GDP growth rate and low unemployment, plus real estate fundamentals coupled with attractive yields.

“The economy is open, highly international and firmly pro-business. It hosts blue-chip occupiers in pharma, tech and financial services who operate in the euro area,” Jacquesson added. “And since 2022, yields have grown even more compelling while liquidity has held up and leasing indicators remain healthy. On that basis, we maintain a positive outlook.”

Tickets are available here for Bisnow's Ireland Office and Workplace Summit, which takes place on 24 September at Union Investment's Two Grand Parade.