Ownership of West End retail property by Irish investors has declined dramatically over the last year, with an increasing number of investors selling, according to the latest research by CBRE.
Irish investment in Central London retail property since 2009 has amounted to over £1.3 billion, dominating transactional activity. However, £1.2 billion of this investment has consisted of property disposals, illustrating a rapid decline in the influence of Irish investors on West End retail.
Irish inestors featured in 10 out of the 11 retail property investment transactions on Bond Street and four out of the eight transactions on Oxford Street in 2011. This represents 94% of the total volumes transacted in 2011 across these locations, compared to only 50% in 2010, and 38% in 2009.
However, 11 of the 14 retail transactions undertaken by Irish investors on Bond Street and Oxford Street in 2011 were disposals, representing 90% of transactions in these locations. This compared to seven Irish disposals in 2010 (47%) and four disposals in 2009 (20%).
CBRE research shows that there are now less than 10 private Irish owners on Bond Street, accounting for 12% of total assets on the street. A similar trend has been established on Oxford Street where Irish investors own 13 properties and account for just 5% of the total ownership.
Phil Cann, Executive Director – Central London Retail, CBRE, commented: “The West End retail properties sold by Irish investors in the last 18 months have been some of the most valuable in Central London. More often than not, the disposals are cross-collateralized with poorer performing assets within investor portfolios; however, these transactions should not undermine the impressive returns earned by investors in key London locations.”