- 1 Minute Read
- 21st September 2012
German firm searches for Irish investments
German property investment firm AM Alpha have revealed plans to open further serviced offices in Ireland, following the successful purchase of Dublin’s The Riverside II block.
A spokesman for the company highlighted its preference for commercial property in Ireland, with yields of over 7%. It is also willing to consider the conversion of sub-prime residential properties, in a move that echoes the success of projects in regional UK centres such as Birmingham and Manchester.
The Riverside Block II, at Sir John Rogerson’s Quay in Dublin’s affluent Docklands, was purchased for €35.6m in 2011 from Irish consortium The Riverside Block II Partnership. In the opening 12 month period, the offices generated a rental income of €3.305m, suggesting a net yield of 8.6%. AM Alpha paid a further €280,000 for 32 additional parking spaces, generating an effective turnover of €91,000.
The property comprises of seven floors of prime office space covering 6,800 sq m, which have been let in full to BNY Mellon and Beauchamps Solicitors. Long leases put in place by AM Alpha ensure a stable long-term cash flow; a spokesman said: “After the sharp downturn in the course of the European financial crisis, the Irish economy and the Dublin property market have bottomed-out and prices for commercial real estate are on a sustainable level again.
"Due to the fact that very few investors have rediscovered the Irish property market so far, initial yields for grade A buildings in prime locations are at historically high levels."
The move also highlights the success of the Dublin Docklands regeneration project, the spokesman continued: “The whole area benefits from excellent transportation links and has attracted many global players and corporate companies such as HSBC, Accenture or Facebook.”
AM Alpha is a Munich-based global real estate investor, with operational headquarters also in Singapore.
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