The Irish Independent - 31st July 2007

Irish spend €3bn in Q2 on overseas commercial property

Irish investors spent €3bn on overseas commercial property in the second quarter of 2007, according to new research from estate agents Jones Lang LaSalle. The figure brings Irish investment to some €5bn in overseas commercial property in the first half of the year.

The UK is still a hot favourite for commercial property investment, accounting for more than €2.1bn of the second quarter's spending.

Germany came in second place, with investments of €426m.

It was followed by the US which drew just €153m of Irish commercial money.

Other major investment destinations included France (€100m), Belgium (€95m) and the Netherlands (€63m), the estates agents said.

Across sectors, retail (€846m), hotels (€736m) and offices (€723m) were are three favoured commercial property assets.

Meanwhile, general leisure schemes drew €240m of Irish cash, "mixed" developments accounted for €234m, just over €103m was invested in business parks.

Residential projects were the least popular investment, accounting for €54.5m, or 1.9pc of the total spend.

The biggest deal of the quarter was Bank of Ireland's €309m investment (on behalf of clients) in a 50pc stake in a Liverpool retail park.

Dr Clare Eriksson, head of research at Jones Lang LaSalle's Irish branch, said there would be plenty more big deals in the next quarter.

"CMC Capitals plans to raise €20m from Irish investors for a new €100m German commercial property syndicate; Augusta, the Dublin-based commercial property fund operator is seeking €20m for another German property fund, while Ailesbury Investments is seeking €30m for a property portfolio in Florida," she said.

"Irish people's appetite for investing in overseas property is showing no signs of diminishing,"

Laura Nooan