Dublin-based estate agent Colliers Jackson-Stops has sold a 60 per cent stake in the group to UK agent Colliers CRE in a tie-up worth €4.8 million, the second such deal to be announced this week.

Colliers CRE, which employs almost 750 staff in the UK and has recently opened an international office in Madrid, will pay €4.08 million in cash and the rest in shares to the five directors that own the Irish group. They will retain a 40 per cent stake. Both groups are part of the Colliers global real estate firm, which has 248 offices in 51 countries.

T J Kearns, a director at Colliers Jackson-Stops, welcomed the move, saying the time was right to link up with a bigger player to increase the company's clout, in particular in the area of investment.

"There is so much money passing through the UK that we see it as a natural link for us to build on," he said.

The combination will increase the Irish group's market in terms of the people it can act for, as well as giving it better access to research facilities.

"People nowadays expect information at the drop of a hat and Colliers CRE will help us in this area," said Mr Kearns.

While internally the Irish property market is considered to be large, particularly in the light of the recent boom and the considerable amounts of money changing hands, it is in fact small by comparison with the UK and the rest of Europe. Last year about €800,000 was invested in the Irish property market, compared with €2 billion in the UK.

Yesterday's announcement comes in the same week that British property group Savills took over Hamilton Osborne King (HOK) in a €50 million deal.

Mr Kearns said he expects to see further consolidation as the industry becomes even more globally orientated, backing up comments made earlier in the week by Jeremy Helsby, chairman and chief executive of Savills.

He said Savills would be looking for further acquisition opportunities in the Irish market.

David Izett, managing director of Colliers CRE, said that while the group already enjoys an excellent relationship with Colliers in the Republic, the tie-up will help it benefit from the strong money flow from Ireland into the UK and mainland Europe.

Colliers Jackson-Stops, established for over 70 years, had turnover of €5.5 million last year.