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 7th and final stage of Caddens Hill, with minimum investment amounts starting at $250,000, targeting 17.5% investment return over the twelve month construction period. Legacy Property has $3bn of projects completed and in progress consisting of c.3,600 dwellings . 14 projects have been completed with another 7 underway, gross completed project values range from $85m to $248million for each project.
Home loan approvals have fallen significantly off the back of the APRA and the Royal Commission initiatives together with new Responsible Lending Criteria. The ABS recently reported that home loan approvals have fallen by 13.6% year on year and within that, investment loans have come back by c.20%
Off the back of successfully settling a $48m syndicated first mortgage for a residential apartment development in Sans Souci just weeks ago, Sydney-based real estate investment manager Centennial Property Group (CPG) opened a new fund with a focus on the industrial and logistics market, Centennial Industrial and Logistics Fund II (CIL II). The fund, available only to wholesale and private high net worth investors, opened on 1 November and was seeking to raise c. $38 million. CPG closed the fund less than two weeks later, well before the official close date, due to oversubscription.
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 >