Treasury Holdings upbeat on market activity

ACTIVITY levels in the Irish marketplace have picked up for Treasury Holdings — who say deals are being done at prices that enable commercial tenants to make money.

They company said the deals are being completed “at current prevailing open market values or slightly higher, and the market is now at a level where occupiers are capable of making money”.

The Irish-based international group reports on 89 Irish lettings and deals since September last, representing almost 400,000 sq ft of real estate in the half-year period.

Managing director, John Bruder, said it was their busiest six months since the height of the boom.

Some 83 deals were lettings (68 residential, 21 commercial), producing an annual rent roll of €4.75 million. Occupancy levels in Treasury’s Irish portfolio is 90%, with arrears below 3%, they say.

“Despite the recession, and the common belief that the Irish property market is virtually moribund, occupiers are continuing to do business,” says Mr Bruder.

Most activity in the larger deals was from overseas companies showing continuing foreign direct investment. Treasury’s big news was the sale of its Montevetro building to Google for close to €100 million.

Commercial deals were primarily in Dublin, and include lettings at CollegeGreen, Wilton Plaza, Stillorgan Shopping Centre (to Donnybrook Fair) and Ballymun Shopping Centre. Residential lettings were secured in developments in Spencer Dock and the Alto Vetro building.

“The letting market for residential property in central Dublin is extremely busy, with the average turnover period between a tenant vacating a premises and a new tenant being found generally being a matter of days,” says Treasury.

New building will be slow to recommence, the firm believes: “Both equity investors and debt funders will be extremely conscious of de-risking new development projects in the future by securing occupier pre-lettings or pre-sales in advance of starting work on site.”

The company said this should reduce the cyclical nature of the market, lessen unsustainable levels of supply and also produce higher quality buildings tailored to specific occupier requirements.