Irish properties outperform Europe with 2 billion euros in transactions in the second quarter of 2022

Investors continue to buy Irish properties with nearly €2bn changing hands in the second quarter of the year. This contrasts with the European market where investors are cooling and some transactions are stagnating.

As much as €897 million of investments were traded in Ireland in the second quarter, and Canadian investor Brookfield Asset Management bought Hibernia Reit for €1.1 billion, bringing the total for the quarter, according to JLL agents. to 2 billion euros.

This performance represents more than double the 763 million euros of investments that changed hands in the first quarter.

This second quarter dynamic was also reflected in the number of transactions with 47 against 31 in the first quarter.

“Despite the volatility and uncertainty of the post-pandemic economy, expectations for healthy trading volumes in 2022 have not diminished in the face of the multitude of challenges that have presented themselves,” said Niall Gargan, Head of research at JLL Ireland.

“This contrasts with continental Europe where the onslaught of geopolitical and economic hurdles have impacted many important deals, leading them to stall or fail.”

He referred to a €300m-plus deal in Dusseldorf and a €160m deal in Munich.

Explaining Ireland’s outperformance, he cited the location, attractive yields, rising rents in the office and industrial markets and a rebound in the Dublin office market thanks to some high-profile leases.

Ireland has not seen the investor hesitation seen on the continent and it expects some notable large-scale deals to be completed before the end of the year with over €1.5bn of investments currently on the market and a significant number of assets that are expected to come to market in the near future.

Ireland’s residential investment sector also performed well in the second quarter, accounting for 24% of the €897 million in deals.

Offices accounted for 26 pc and manufacturers 20 pc.

In addition to the Hibernia Reit deal, another significant deal saw LCN Capital Partners pay almost €100m for three redeveloped office buildings occupied by Flutter Entertainment on Belfield Office Campus, Dublin 4. Spear Street Capital was the seller and JLL the selling agent.

Off-market transactions also figured notably with a residential investment in Dublin of €98m and an industrial property in Dublin of €68.5m.

Mary I. Bruner