Student accommodation and retail deals spur property investment
Two of the biggest deals in the last quarter of the year were in the retail and student accommodation (PBSA) sectors.Paddy McKillen Sr and Padraig Drayne sold Jervis Shopping Centre in Dublin city centre for about €120m and it was reported that the preferred bidder was the UK-headquartered investor Pradera.Extending to more than35,700 sq m, the centre accommodates more than 90 retail units and fronts on to one of the city’s busiest shopping precincts – Henry St/Mary St, as well as Upper Abbey Street with its busy Luas station. Its tenants feature retailers including Tesco, JD Sports and Boots.The other big deal of the quarter saw the multinational residential landlord Greystar purchase a 724-bed portfolio of purpose-built student accommodation in Dublin and Galway known as Project Galaxy from EQT for around €104m, in a deal brokered by Cushman & Wakefield.As many as 290 of the beds are located at Mayor Square in Dublin’s IFSC. The other 434 beds are in Cúirt na Coiribe near University of Galway.That deal marks Greystar’s second major investment in student accommodation in Ireland, following its purchase of Point Campus in Dublin last December.Retail property, with €753m worth of sales, accounted for 29pc of the value of the deals done in all of last year. It was followed by offices with €672.5m, or 27pc, and industrial with €248.5m, or 8pc.International capital remained an important driver of activityA further 24pc, or €602m, was accounted for by the sector known as “living”, of which about a third was student accommodation, with the rest mainly apartments.In geographical terms, Dublin accounted for 75pc of the value of all properties sold.But those figures do not include the €1.4bn sale of Dalata Hotels which included a number of Irish, UK and European hotels.Niall Gargan of JLL said that 2025 activity remained below long-term averages and broadly in line with 2023 and 2024 levels. A shift in sentiment began to emerge in the closing months of the year.“Momentum strengthened… supported by declining interest rates, stabilising capital values and an improving backdrop for transaction execution, particularly for well-positioned assets,” he said.“International capital remained an important driver of activity, with overseas investors active across all major sectors.“This reflects Ireland’s continued appeal as a stable, pro-business market supported by favourable demographics, strong occupier demand and improving visibility on policy and interest rate trajectories. Debt markets also became more supportive over the course of the year, with improving availability and pricing helping transaction execution and underwriting confidence.”
