Irish portfolio doing well despite downturn, says property firm REO

INTERNATIONAL property development company Real Estate Opportunities (REO) has said that its Irish portfolio is continuing to perform well, despite the general downturn in the market here.

REO – which is more than 60% owned by the Dublin-headquartered property company, Treasury Holdings – reported in its latest interim management statement, that occupancy levels in its Irish business remains high – and at a rate of over 95%.

“Although market conditions remain extremely difficult with the poor economic outlook and weakness in property markets, the REO business continues to perform well due to our high quality investment portfolio, which is focused on prime office and retail assets in Ireland with a broad tenant base,” commented REO chairman Ray Horney.

“Our impressive development portfolio is prudently timed, positioning REO to continue to outperform the market through this cycle.”

Mr Horney said that its Irish portfolio – the company also has assets in Britain, including the Battersea Powerstation site and the new US embassy in London – is managed carefully and development projects are timed “to weather the current market conditions and to move forward once conditions improve”.

Despite the company’s generally upbeat nature, however, take-up of office space in Dublin was down – year-on-year – in the first quarter of this year, by 77%.

The ongoing uncertainty in the property market here has, according to REO, pushed city centre vacancy levels up to 15% in Dublin.

The next two years are expected to show – for Dublin, anyway – rents come down as demand remains low in the office property market.

REO also gave an initial welcome to the creation of the National Asset Management Agency (NAMA), saying that while it is too early to comment until the actual legislation is published, the proposal should be welcomed.