Apr 10 2017Add to Favorites
Monsef Rachid, World Property Journal
According to JLL, just over $500 million of Irish property has traded in the first 3 months of 2017.
Volumes were boosted by a few large transactions, with one deal greater than $106 million. 13-18 City Quay, which was sold by Targeted Investment Opportunities and purchased by Irish Life, was the largest transaction at $134 million. The 110,000 sq. ft office building, which was pre-let last year to Grant Thornton on a 25-year lease is due to start construction imminently, and therefore this sale is a forward funding investment for an office development.
Hannah Dwyer, Head of Research at JLL said, "Like Q1 2016, 2017 has started relatively slowly, with limited supply of new quality product coming to the market in the first 3 months of the year. Although $500 million for Q1 is a steady start to the year, a number of these transactions, particularly the larger ones, are deals that were concluding towards the end of last year.
"The largest transaction was the forward funding of an office development that is under construction. There will be further opportunities for access to some larger transactions over the course of the next 12 months via forward funding. As pricing for prime Dublin office buildings has intensified in the last 2 years, forward funding offers investors an opportunity to purchase a Grade A office investment opportunity at slightly lower pricing levels, albeit with slightly more risk.
"Demand continues to be steady from both domestic and overseas purchasers, but some are being more selective, depending on the investor type. We are continuing to see new entrants to the market which is positive. The depth of bidding on some transactions, is critically dependent on vendor price aspirations with a noticeable swallowing of demand where the property is regarded as over-priced."
SOURCE: World Property Journal
Residential developer Legacy Property is set to commence a syndicated equity raise for its 7thand final stage of Caddens Hill, with minimum investment amounts starting at $250,000, targeting 17.5% investment return over the twelve-month construction period.
MP Funds Management (MPFM) has made its first investment of 2019, a co-investment with another group that MPFM has a successful and ongoing co-investment relationship with. The acquisition of the Crossroads Homemaker Supercenter (the subject property) is an opportunity of scale and dominance in one of Australia’s most significant growth regions. The centre offers an existing net lettable area of 47,997sqm on 143,997sqm land over 4 separate lots. 93% of the property income is underpinned by national retailers including Bunnings Warehouse, Freedom, Fantastic Furniture, the Good Guys and Nick Scali.
Dexus today announced its result for the half year and reaffirmed its guidance for distribution per security growth of circa 5% for FY19. Dexus Chief Executive Officer, Darren Steinberg said: “It has been a productive six-month period where we have added value through enhancing our development pipeline and attracting new investors to our funds management business. This has all been achieved while maintaining low balance sheet gearing. “In our office portfolio we continue to outperform the MSCI office benchmark1 over one, three and five years through driving higher rents and lower incentives, particularly in Sydney which has been reflected in property valuations during the period. “In our funds management business, we now have $15 billion under management with investors and partners that can invest alongside us through the cycle, reinforcing our objective of being the wholesale partner of choice in Australian property.”
Creating an account with MP Report allows you to save articles and update your preferences to filter the content based on your interests and what content you would like to receive from us via our email alerts and newsletter.SIGN UP HERE >