€2.1bn in Irish commercial property sold last year

The Chancery Building, Dublin 8

Donal Buckley

Last-minute deals for commercial investment properties pushed the total spend for 2023 to €2.13bn, according to figures compiled by a number of estate agencies. This was less than half the annual average in the decade up to the end of 2022.

A combination of rising interest rates, global economic uncertainty and investor caution depressed commercial-property prices, and reduced the number and values of deals done during most of last year. But in December, amid expectations that interest rates might fall in 2024 and that the market was close to bottoming out, some investors snapped up bargains.

Among the deals done last month was the sale of Trinity Point office block at 10/11 South Leinster Street, overlooking Trinity College Dublin, for around €40m. Sold by a private Irish investor, the price represented a substantial discount on its €57m price tag, and suggests the Office of Public Works, which is believed to have been the purchaser, may have got a bargain.

The OPW has been renting most of the space in the 43,696 sq ft building, and was facing a rent increase, so there appears to be a double saving for the taxpayer. The State agency has been paying rents of between €592 to €635 per sq m, but the rents were expected to rise to about €700 per sq m.

Trinity Point is convenient to key Government buildings including those on Kildare Street and Merrion Street. Agents Cushman & Wakefield declined to comment.

Eamon Waters, best known as the founder of waste collector Panda, bought Chancery Building near Dublin Castle for about €15m in another December deal. The vendor, Credit Suisse, is believed to have paid around €23.8m for the property in 2017. It includes a 34,284 sq ft office block and a separate block providing four two-bed apartments, and has been producing €1,505,621 in rent from a number of tenants including the OPW. Selling agents Knight Frank had been guiding €19m.

The Chancery Building is near Ship Street where Mr Waters has developed a new hotel. He reportedly netted about €400m from the sale of Beauparc Utilities, which owned Panda, and has since assembled a substantial property portfolio.

The Grafton Port Collection of buildings was sold for €13.5m to a private investor. They included Tapped pub and Lost Lane night club on Nassau St as well as a shops occupied by Swarovsky and Abrakebabra on Grafton Street. Agents Bagnall Doyle MacMahon had been guiding €16m.