Irish investors have doubled their money in 18 months with the sale of €2.4 billion worth of properties in the US.
A number of properties in which Davy Private Clients - part of Davy Stockbrokers - invested have been sold for a total of €2.4 billion. The deal allowed some of the firm's Irish clients to double their money in 18 months.
One of the buildings sold was 237 Park Avenue in midtown New York, which went for $1.18 billion (€880 million).
It was bought in late 2005 for $568 million. Davy's investors paid $45 million and got a return of 110 per cent on their money.
The building is a 1.1 million sq ft property beside Grand Central Station and near the landmark Helmsley Building in midtown Manhattan. The Midtown district is benefiting from a boost in property values that have seen asking prices jump from between $700 and $800 per sq ft to $1,200 over the last 18 months.
Davy Private Clients has broadened its offering to customers to include substantial investments in property.
The firm says that the US provides "both asset and geographic diversification for clients". The US commercial property market has been performing strongly in recent years.
Davy has been working with Boston-headquartered Beacon Capital Partners, one of the most successful property fund managers in the US.
Beacon was able to bring in US merchant bank Bear Sterns as a tenant in Park Avenue, where it joined the likes of Warburg Pincus, Credit Suisse and Revlon.
Davy clients also benefited from the sale of 10 buildings with over 2.5 million sq ft of office space in Washington DC for $1.225 billion. The group of properties was known as the Westfield portfolio.
All are located between Capitol Hill and the Pentagon, and have largely state and government tenants. Davy Clients are understood to have invested $50 million and got a 60 per cent return.
In January, Davy clients invested $70 million in Beacon's BCSP V fund, which intends buying properties across both the US and Europe.
The fund recently bought London's Citypoint building for close to €1 billion. Citypoint consists of 700,000 sq ft and 36 storeys.
Davy Private Clients is understood to be continuing to seek further real estate investment opportunities in Europe and the US.
