A round-up of this week's other commercial property news in brief ...
Rate of fall in UK slows
The decline in capital values in the UK commercial property market eased in January, raising hopes of an improvement in 2009, according to the IPD monthly index. The researcher reports that values fell by 3.01 per cent compared to -5.84 in December. Total returns for the first month of the new year were much improved but still -2.4 per cent. It was the best monthly performance since September 2008.
Nenagh site down €8m
An indication of how site values have fallen comes with the announcement by CB Richard Ellis that it is now quoting €4m for a town centre site of 5.7 acres in Nenagh. A year ago the agent sought €12m for the same property. Wesley Rothwell of CBRE says Nenagh is not saturated with retailers and he believed the land would be of interest to a number of multiples as well as a German discounter. The site, according to the local development plan, would be suitable for a new retail and other mixed-use scheme.
Investment activity down 59%
Global investment activity in commercial property fell by 59 per cent in 2008 to $435bn, down from 2007’s record of $1,050bn. This was the lowest annual total since 2004, says Lisney’s international partner Cushman Wakefield.
IPUT sells off-market
A private investor has paid just over €5m for an industrial building at Furry Park, Santry, D7. The off-market sale, for the Irish Property Unit Trust, shows an exit yield of 7 per cent. The 3,384sq m (36,425sq ft) building is let to the OPW at €400,000 per annum, equating to €118 per sq m (€11 per sq ft). The lease has over 15 years to run. Niall Gaffney of IPUT says the fund has consistently placed investments off-market. “We like to regularly turn over the portfolio and will use the proceeds of this sale to help fund our various capital commitments into 2009. In these challenging times, the completion of the sale is encouraging.” Savills advised IPUT and HWBC acted for the purchaser.
€350 per sq m rent in D4
Agent Quinn Agnew is marketing the remaining 170sq m (1,830sq ft) of office space in a new scheme in Sandymount, D4. A rent of €350 per sq m (€32.5 per sq ft) is being quoted along with €1,200 for parking spaces. The balance of the space has been taken by Rainmaker Business Consultants.
