Investment deals in Ireland top €2.2bn in first half of year

Forward funding: Premier Inn hotel in Dublin’s North Docklands

Donal Buckley

More than €1bn was invested in the Irish property market during the three months to the end of June, bringing to €2.2bn the value of deals done so far this year.

These are among the preliminary estimates for deals done in the €1m-plus category, according to property consultants CBRE.

Several notable transactions are currently in advanced negotiations, which bodes well for investment spend in the second half of the year, according to CBRE.

Multi-family residential investment accounted for the bulk of first-half investments, but CBRE director Marie Hunt expects the office sector will dominate in the second half of the year, with several high-profile office buildings being marketed or due to be released for sale over the coming months.

She also expects to see continued  momentum in the multi-family sector over the summer months and into the autumn.

Among the major investment deals in Q2 was a €70m forward funding deal for the 262-bedroom Premier Inn in Dublin’s north docklands. Germany’s Union Investment has acquired it from Glenveagh Properties.

The hotel sector accounted for €170m worth of deals, of which more than €156m were in the last three months.

These included the sale of the Morrison hotel in Dublin for more than €65m to Zetland Capital, a London-based private equity firm. The vendor, Russian billionaire Elena Baturina, bought it for €22m.

Also, the 157-bed Moxy Dublin City hotel just off O’Connell Street, was sold by the Spitzer family’s Midwest Holding group for €35m to the MHL Hotel Collection.

“The development land market recorded 15 site sales worth about €73m during the last three months, bringing total number of site sales in the first half of the year to 39 – worth a combined €183m,” Ms Hunt said.

Despite the effect of the pandemic on the retail sector, Ms Hunt expects occupier interest to gather pace.

“As rental values begin to show signs of stabilising, (we) are beginning to see some signs of improved interest in retail investment opportunities, with a particular appetite for grocery-anchored neighbourhood retail schemes, retail parks and asset management (opportunities),” she said.

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