It was a year of two halves for the Irish commercial property market; but the expectation now is that the latter half of the year – rather than the sluggish first six months – will set the pace for 2025.
Indeed, the year got off to a particularly slow start, with investor spend of just €160 million – the lowest quarterly figure since the global financial crisis.
However, the market subsequently picked up; estimates now suggest that the year will finish with turnover of about €2.5 billion.
After several years in the doldrums, retail was the star performer in 2024. Yes, values have shrunk – consider the €950 million paid for Blanchardstown Centre back in 2016 compared with the €600 or so million paid by Strategic Value Partners – but this repricing has got the market moving. Several of the year’s top deals – including The Square, Tallaght; Mahon Point, Co Cork; and Blackpool SC and Retail Park were across this sector.
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A high vacancy rate remained an issue across the office sector, but expectations are that this will start to shrink in 2025, with industry commentators pointing to a turning point in the market, buoyed by deals such as Workday’s mammoth letting at College Square.
Activity was also strong in the hotel sector; despite trading difficulties, sales look set to top €1 billion, with notable deals including the sale of The Dean portfolio and The Shelbourne Hotel.
Logistics, a strong performer – albeit in a weak market – in 2023, struggled to generate activity this year, and the expectation is that take-up will be less than half of the three million square feet recorded in 2023.
While a number of private rented sector (PRS) deals make our top 10, overall activity in the sector was down, with the construction of new apartments grinding to a halt.
Here are the year’s top deals:
1 Blanchardstown Centre, about €600m
US investor Strategic Value Partners made its first purchase in Ireland this year, when it agreed to pay about €600 million for the country’s largest shopping centre. Blanchardstown had been put on the market by US banking giant Goldman Sachs, which took it over from private equity giant Blackstone for €750 million four years ago, for a sum of about €650 million. However, the deal closed in November – pending regulatory approval – for a sum understood to be closer to €600 million. Shoppers should expect more innovation at the centre: Strategic Value Partners said it was planning to make significant investment at Blanchardstown, including across its food and beverage offerings.
It’s the third time control of the shopping centre, home to brands such as Marks & Spencer, Penneys and Nike, has changed hands in the past decade. Blackstone paid about €950 million for the centre, when it took it over from developer Green Property in 2016.
2 The Square, Tallaght €130m
It may have carried an indicative peak value of some €640 million back in 2007, but this year’s sale of the Tallaght shopping centre is some way off that level. In September, The Square was acquired for €130 million by Eagle Street Partners, the pan-European real estate investment and asset manager, and Arrow Capital. Outgoing owner Oaktree Capital – which acquired it for €250 million from Nama in 2019 – had been in talks to sell to Texas-headquartered real estate investor Hines for up to €129 million, but these talks fell through.
3 Hayfield apartments, €97.5m
This sale of 207 apartments at the Hayfield development in Killiney, south Co Dublin, originated in 2022.
At the time, German investor DWS agreed to pay Park Developments €110 million for 190 apartments on the 3.75-acre site, next to the well-known Graduate roundabout, representing an average of €579,000 per unit.
When the forward purchase deal subsequently closed, in November this year, DWS, a subsidiary of Deutsche Bank, said that it had paid slightly less for slightly more apartments.
Indeed, it paid €97.5 million for 207 apartments at the scheme – or about €471,000 per unit, in the off-market transaction.
4 North Dock offices, about €85m
The landmark North Dock office scheme, beside Dublin’s 3Arena, which was developed by Targeted Investment Opportunities (TIO), an umbrella fund involving Nama, Oaktree Capital and Bennett Construction, was acquired for about €85 million by US fund Starwood in November.
It extends to some 18,766sq m (202,000sq ft) across North Dock One and North Dock Two. It was put on the market for about €130 million earlier this year, on behalf of the receiver, Interpath Advisory. The receiver was appointed by US investment giant Pimco, which provided funding to the project.
5 Scape PBSA, €79.5m
This purpose-built student accommodation (PBSA) in the heart of Dublin 2 was acquired by Hines, the global real estate investor, developer and manager in September for €79.5 million. Hines said the acquisition was part of its strategy to acquire assets “where demand is strong and supply is constrained”. Scape, a 298-bed student accommodation facility that opened in 2020, has been rebranded as Aparto Dublin Stephen’s Quarter. Scape, a global provider of student accommodation, said the funds would go towards expansion in its other markets in the UK, US and Australia.
6 Jameson Orchard, Malahide, about €70m
Another PRS deal was the sale of 136 units at Jameson Orchard in Malahide, Co Dublin, for €70 million.
The units, with an average price of some €514,705, were acquired by the Dutch fund Orange Capital Partners, marking its fifth Irish PRS acquisition since the start of 2018.
7 Units at Ashbourne Business Park, Co Meath, €70m
German investor Deka Immobilien made its first foray into the Irish logistics sector in October, when it paid €70 million for a new logistics centre in Ashbourne, Co Meath. The properties, which encompass a total rental area of 33,379sq m, have been let to the Primeline Group, one of the largest independent Irish providers of logistics, distribution, and marketing services.
8 Nursing home sale & leaseback, €56.7m
Healthcare Activos, a Spanish healthcare investor, entered Ireland for the first time through its sale and leaseback deal with Emeis Ireland (formerly Orpea) in the second quarter of the year.
It paid €56.67 million for a total of 332 nursing home beds across Portmarnock (151 beds), Portlaoise (101 beds) and Kilkenny (80 beds).
9 Mahon Point Retail Park, €50m
French investor Corum paid about €50 million for the Mahon Point Retail Park – considered the leading retail park outside of the capital – at a yield of 7.23 per cent, in the second quarter of the year.
It is adjacent to the popular Mahon Point Shopping Centre, and home to tenants including B&Q and Currys. Vendor IPUT, one of the country’s largest property funds, paid about €56 million for the retail park in 2019. The sale of the Cork retail park leaves IPUT focused on prime Dublin locations.
10 Blackpool Shopping Centre and Retail Park, €48m
Having paid about €115 million to acquire Blackpool Shopping Centre in 2014, and then failing to find a buyer for it at €117 million three years later, US investor Varde Partners agreed an off-market deal to sell the Cork retail scheme for €48 million.
The heavily discounted shopping centre and its adjoining retail park and offices, whose tenants include Woodies, Aldi and Boots, were acquired by Irish property investor Lugus Capital and London-headquartered Patron Capital.
Other notable deals
Shackleton Park, Lucan, Co. Dublin, €42m The sale of 104 fully rented units at Shackleton Park, a PRS development in Lucan, Co Dublin, was the largest deal of the first quarter of the year. KGAL, a German institutional group, paid more than €42 million (€403,846 per unit) for the units, which were sold by TPG Angelo Gordon and Carysfort Capital.
One Warrington, €41m It was bought for €27 million by US investors in 2012, before being subsequently sold to Irish Life just two years later for €42 million. Then, in the third quarter of this year, the Irish insurance and pension company offloaded the property, which has a prime location in Dublin 2 on the Grand Canal, to a private Irish investor for about €40.5 million. Current tenants include Bord Gáis.
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