Irish investment in Q4 2015 has surpassed every other quarter last year bringing the total turnover for the year to €3.7bn, according to BNP Paribas Real Estate.
Analysis by BNPPRE shows that 76 deals were closed in the quarter, four of which were over €100m, making up 46% of the total turnover in Q4. The largest deal was the purchase of mixed-use development, Starwood of Elm Park for €190m. The second largest was the purchase of The Nationwide Retail Parks Portfolio for €177m by Davidson Kempner. The remaining 72 transactions were under €100m in size, with 69 deals below €50m.
Retail transactions dominated Q4 activity making up 38% of total transactions. Although office transactions made up only 22% of total value in Q4, office deals made up €1.6bn of the total €3.4bn transacted in the whole year. Mixed-used investment was strong in Q4 at €372m, considerably higher than spend on mixed-use portfolios in the first three quarters of the year which totalled €121m.
Investment in Dublin dominated the Irish market with 75% of total investment located in the capital. The 25% transacted outside Dublin was dominated by a number of nationwide retail portfolio sales. The sale of two retail portfolios that had a majority of properties located outside of Dublin (Cornerstone and The National), made up 9% of turnover for the entire year.
US investors made up 30% of the total purchased in Q4 and 27% of the total €3.4bn invested in Irish property in 2015. Irish investors (including funds and private) purchased close to €700m (19%) of total turnover 2015, while German, UK and other investors making 19%.
Approximately €600m of deals are expected to close in the first quarter of the year creating a positive outlook for 2016. Office opportunities are expected to lead investment spend but strong interest is expected from international and domestic investors in prime retail opportunities that come to the market, said Joan Henry, head of research at BNP Paribas Real Estate.
