€6bn ready to invest in property

There is an appetite among international investors to capitalise on the expected property recovery with over €6bn ready to invest in Ireland, according to Jones Lang LaSalle.

According to a survey of investors carried out by the property company there is a bidding war emerging for prime properties in Ireland and real estate investment trusts are now the only way that smaller players can get a return from the property market.

Head of research with Jones Lang LaSalle Hannah Dwyer said the trusts are availing of yields and recovery.

“We are aware of €6bn of capital looking to invest in Irish property at the moment, with investors from across the globe looking to avail of the perceived high returns.

“The trusts are looking to capitalise on market recovery, whilst values have bottomed and the first signs of growth are emerging. There are a number of investors who are being out-bid on prime assets, and real estate investment trusts give smaller investors an opportunity to buy into a portfolio along with other pools of investors to strongly compete for investments coming onto the market,” she said.

The research from Jones Lang LaSalle came after WK Nowlan launched the country’s second trust. The €300m trust will buy commercial property in Ireland. The Reit will float on the London and Dublin stock markets.

Ms Dwyer said that the establishment of two trusts since enabling legislation was launched in September was a boost to the property sector.

“News that a second real estate investment trust is to be launched is another positive story for the Irish property market recovery. The establishment of two trusts in the last few weeks, and news that further trusts may follow is a considerable endorsement of the Irish property market, and highlights a return in confidence in the sector,” she said.