Dublin can gain from Brexit, says investor

International property investment company Kennedy Wilson Europe (KWE) has said Ireland, and Dublin in particular, is well-placed to benefit from increased multinational investment from Britain leaving the EU.

The company yesterday reported a 35% year-on-year increase in first-half net operating profit to just under £79m (€93m).

It has over 200 commercial and private rented leases in Dublin and said its Irish operations contributed £129m to group revenues in the period.

Rental income from its Dublin properties grew from £13.9m to £19m.

Management said it is “alert” to potential risks and opportunities facing the investment and occupier markets in the UK and its other target markets of Ireland, Spain and Italy in light of the recent Brexit vote.

“Dublin is well-placed to benefit from potential job relocations and the additional foreign direct investment opportunities that may arise as companies look to realign their geographic footprint. This should increase demand for offices and the private rented sector, in particular,” it added.

KWE said its Irish portfolio had a positive six months, with healthy take-up levels on the office side helping to push prime headline rents to €57.50 per square foot. It said there were also positive signs for its retail portfolio here.

Overall, KWE said its business remains in “a robust position, benefitting from a highly diversified portfolio”.

It said is not seeing any uncertainty, as yet, feeding into its occupier base, “with a good level of leasing activity completed and under way since June 23”.