Demand for Irish assets triggers yield compression

Hunt: the liquidation of IBRC will
Hunt: the liquidation of IBRC will “escalate the pace and volume of deleveraging in Ireland

The weight of money chasing prime investment opportunities in the Irish market is having a positive impact on yields, said CBRE this month.

In the firm’s first bi-monthly report of the year, Marie Hunt, head of research in Ireland, said prime yields had fallen 25 basis points for offices, shops and shopping centres.

She said the momentum of the second half of 2012 had carried on into early 2013 with “very strong demand from investors”.

The IBRC liquidation would “escalate the pace and volume of deleveraging occurring anyway in the Irish market,” she added. CBRE said some international investors were “moving up the risk curve” to buy product, while deal volumes were also picking up outside Dublin.

 

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