European investors come back in to Irish property (04/09/2014)

Peter Flanagan, Published: 04/09/2014

THE Dublin commercial property market is facing a fresh influx of overseas investors as European funds begin to dip their toe into the market here.

Up to now, the recovery in commercial property in the capital has been driven largely by big American investors who are known for being the first firms to take on risk in suppressed markets.

That is beginning to change now, however.

Large German and French pension funds have begun competing for investment properties in the best parts of Dublin. Two German funds are understood to have bid for a retail unit off Grafton Street, whlie a French fund is known to have been an under-bidder on a large office block in the Grand Canal Square area which has been sold in recent weeks.

The advent of European institutional investors is considered crucial to building a sustainable recovery in the property market here.

US investors such as Kennedy Wilson, Blackstone Group and LoneStar have made a killing in Ireland. Moving in in the immediate aftermath of the crash, these investment firms and others like them were able to hoover up trophy assets at near bottom dollar prices.

Those players however generally only stay in the market for a short time and look to “flip” assets in the space f three or four years as capital values begin to appreciate. Already firms have begun to sell off less desirable properties.

– See more at: http://www.independent.ie/business/commercial-property/european-investors-come-back-in-to-irish-property-30532249.html#sthash.xVICsyYO.dpuf