cbpa.ie

THE SPAWELL leisure centre in Templeogue, Dublin 16, an office building in the Gasworks in Belfast and the Vantage Business Park site near London are amongst 105 new properties listed by Nama on its website yesterday.

The majority of properties – 58 – named are in Northern Ireland and include an office building in the Gasworks in Belfast as well as a number of pubs.

Thirty-eight properties are in the south of Ireland, and nine are in London. In Dublin, pubs on Dawson Street, Mount Street Lower and South Great George’s Street are in receivership but none is yet for sale.

The new information includes all properties which were subject to enforcement action by October 31st. These include 57 to which receivers were appointed during October; receivers had already been appointed to 48 other properties prior to acquisition of the loans by Nama in October.

The properties to which receivers were appointed during October include residential, retail and office developments, agricultural and industrial assets, as well as a njumb er of pubs,

The total number of properties now listed by Nama is 1,040, some of which are multiple properties such as apartment blocks.

The fact that a property is listed does not necessarily imply that that property is currently on the open market for sale, the agency says on its website.

Only 20 of the 105 just listed are currently for sale. The full list of properties is on Nama’s website, nama.ie/about-our-work/properties-enforced/.

source: irishtimes.com

THE European Central Bank should cut interest rates and step up its bond purchase programme to support confidence andeconomic activity in the eurozone, which has entered a mild recession and is the main risk to the world economy, the OECD said.

In its world economic outlook, the Organisation for Economic Cooperation and Development forecast economic growth in the 17 countries using the euro will slow to 0.2% in 2012 from an estimated 1.6% in 2011.

The bloc’s economy will then expand by 1.4% in 2013.

With unemployment set to rise and inflation to fall, the choice for the ECB was clear. “This calls for… in the euro area, a substantial relaxation of monetary conditions.

“The euro area crisis represents the key risk to the world economy at present, with concerns about sovereign debt sustainability having become increasingly widespread,” the report said.

The debt crisis, which started in Greece in early 2010, has since engulfed Ireland and Portugal and is now threatening Spain, Italy and France. Even Germany has seen its borrowing costs rise sharply.

Eurozone countries are consolidating public finances to win back market confidence, but that also negatively affects their growth rates.

“The euro area is seen to have entered a mildrecession, which will be followed by an only hesitant pick-up in activity.

“Deteriorating financial conditions and ongoing fiscal consolidation, with several countries having announced additional consolidation in the light of heightened concerns about sovereign debt sustainability, will act as a drag on the economy in both 2012 and 2013,” it said.

Banks would need to be well capitalised and policies put in place for sovereigns to finance themselves at reasonable rates.

“This calls for rapid, credible and substantial increases in the capacity of the EFSF together with, or including, greater use of the ECB balance sheet,” the report said.

source: examiner.ie

LANDLORDS WILL be prevented from putting properties up for rent if they fail to meet energy efficiency standards, Minister for Energy Pat Rabbitte has said.

Publishing the national Affordable Energy Strategy yesterday, Mr Rabbitte said he also intended to review fuel allowance schemes to prioritise “colder homes”. However, he said the schemes would not be changed in the upcoming budget.

Some €2 billion had been paid by the State in fuel supports in the last 10 years, while less than €200 million had been spent in bringing houses up to energy efficiency standards. Around 20 per cent of households are experiencing energy poverty but social welfare fuel payments had been “largely ineffective” in tackling the problem, Mr Rabbitte said.

“To be perfectly honest, with some of the money you may as well be throwing it into the furnace because it’s going up the chimney.”

He said the Department of Energy planned to work with energy suppliers, community groups and local authorities to identify areas at risk of energy poverty.

Households would be offered benefit entitlement assessments and advice on energy-efficiency measures. Economies of scale could be achieved through group home upgrade schemes being adopted.

Grants for retrofitting measures will be replaced by a pay-as-you-save scheme where the cost of the installation is factored into regular energy bills.

The extent to which some landlords had allowed the energy standards of properties to deteriorate was “one of the ugly faces of the boom”, Mr Rabbitte said.

“Some landlords care little for energy standards because they’re not the ones paying the heating bills.”

In future landlords would not be able to rent properties without building energy rating (BER) certificates, and by 2020 regulation would remove properties with a rating of E, F and G from the rental market.

The Society of St Vincent de Paul said there were “serious gaps” in the strategy, few firm commitments and a failure to mention the domestic oil sector.

“There is precious little regarding specifics or timescales in terms of future measures in the strategy. Specific and time-bound actions need to be named in order to adequately tackle energy poverty for those we assist in a humane and timely manner,” said John-Mark McCafferty, head of social policy and justice at the society.

source: irishtimes.com

THE State’s toxic debt agency NAMA has lost a second director in little over two months. Former Bank of Ireland executive Michael Connolly resigned from the agency last night.

In a statement, NAMA chairman Frank Daly thanked Mr Connolly for his service on the board “during an exceptionally busy and challenging period”.

Mr Connolly was in charge of NAMA’s credit committee — which oversees lending by the bad bank and signs off on any deals to roll over loans to developers. Mr Connelly stepped down just two years into a five-year term. He could not be reached for comment last night.

It is the second board level resignation from NAMA after Peter Stewart resigned in October. It is also the second board level resignation since London-based senior banker Michael Geoghegan undertook a wide ranging review of the agency.

The opportunity to fill the slots, combined with the Geoghegan review, may well provide Finance Minister Michael Noonan with a unique opportunity to put his own stamp on the agency. Appointments to the board are at the discretion of the minister.

- Donal O’Donovan

source: independent.ie

RETAILERS claim rents have fallen just 4% in the last two years while sales have plunged 30%.

In what has been described as the most “in-depth research of rent reduction activity ever” retailers said that commercial landlords have not reduced retail rents “to even close” to market rates. They said government action to abolish upward-only rent is “urgently required”.

The Retail Excellence Ireland (REI) survey of 1,418 retailers found that between 2009 and 2011 rents were cut by an average of only 3.83% and over the same period more than 50,000 retail jobs were lost, with employment in the sector falling to 255,000.

In 2009 an average rent reduction of 3.1% of all lease rents was granted by landlords, this increased to 4.4% in 2010, and increased marginally to 4.4% in 2011.

REI said that over the three-year period total rent of €680m was paid by the 1,418 stores, or €159,000 a year on average.

Gross rent reductions granted over the period amounted to €27m or an average of €6,300 a year.

Retail Excellence Ireland chief executive, David Fitzsimons, said the survey is “clear proof” that the vast majority of commercial landlords have no intention of adjusting rents and are holding onto Celtic Tiger lease agreements.

“Every other cost faced by retailers has decreased over the past three years, with the exception of rents. What is most concerning is the fact that new market entrants can command rent at rates 50% lower than legacy tenants, thus many long-established professional retailers are being forced out of business.”

Mr Fitzsimons said the vested interests opposing the abolition of upward-only rent reviews consistently refer to anecdotal evidence that landlords are engaging with retailers on rent. He said this research clearly illustrates the vast majority of landlords have proven that they are unwilling to reduce commercial rents to rates reflecting the market reality.

“Indeed, the pension funds have claimed that they are legally prohibited from reducing commercial rents. All landlords will at some time have to bear the market realities, whether through strong government legislation to deal with the matter or retail tenant failure.”

From 2000 to 2007 rent increased 240% while consumer prices rose 30%, according to REI.

source: examiner.ie

TWO houses have come up for sale in one of Ireland’s oldest golf estates, Mount Juliet, in Thomastown, Co Kilkenny. As with homes in golf estates around the country, prices have dropped by around 50 per cent there since the height of the property boom.

Number 12 Walton’s Grove, a 217sq m (2,350sq ft) three-bed split level house on the 12th fairway, is for sale for €500,000 through Savills.

Meanwhile 3 South Paddocks, a three-bedroom townhouse overlooking the golf course and paddocks, is for sale through Colliers for €360,000. The same property would have sold for around £250,000 in the 1990s and for €700,000 in 2006.

Colliers is also handling the sale of 6 South Paddocks, which went for sale by receiver in September for €360,000.

Prices in most of the country’s top estates have tumbled in the past five years. At US-owned Doonbeg in Co Clare, prices have fallen by at least 40-45 per cent since 2007 – although prices are still fairly steep.

Currently there are apartments and cottages for sale there ranging from €675,000 for a one-bed in the main lodge to €995,000 for a four-bedroom cottage on the golf course. And at the K Club in Straffan, Co Kildare, 947 Ladycastle – on the Smurfit course – a three-bed home has been on market for six months at an asking price of €400,000 through agent Nolan Brophy.

Around 2006, the year of the Ryder Cup at the K club, prices at the K Club ranged from €980,000 for small two-bed apartments up to to €3 million for four-bedroom houses. Prices of the properties at Killeen Castle in Co Meath got a bit of a boost when the Solheim Cup was held there this year. Three and four-bed houses ovderlooking the fairway were relaunched in September at prices from €315,000 for three-beds and €430,000 for four-beds. But they were well down on 2008, the year they were launched, when prices ranged from €1.2m for three-beds.

source: irishtimes.com

THE NATIONAL Asset Management Agency is planning to press ahead with controversial plans to put 750 homes on the market early next year as part of a negative equity protection scheme.

The agency does not need Government approval to proceed, but says it “wants to bring all relevant stakeholders into the process”.

Informed sources say Nama is finalising plans on how the scheme will operate with special mortgages available through three banks, AIB, Bank of Ireland and Permanent TSB.

While it is piloting the sale of 750 homes, the agency has signalled that it would like to sell up to 5,000 homes. The plan created controversy after former minister for housing Willie Penrose expressed concern it was contrary to Government policy and could artificially inflate the property market before it hits the bottom.

The scheme works by waiving 20 per cent of the purchase price of a home if its value continues to fall over the next five years.

For example, if a couple bought a home from the banks via Nama for €200,000, the agency would defer payment of up to 20 per cent – or €40,000 in this instance – of the property’s current value.

The couple would only have to make this payment in five years’ time if the value of the property stays the same or increases. However, if the property is worth less than €200,000, Nama will waive up to €40,000 and repayments would be altered accordingly.

In recent weeks, Mr Penrose wrote to Minister for Finance Michael Noonan warning that providing incentives to buy houses would run counter to Government policies. The housing policy launched earlier this year identified tax incentives for housing as a driver behind the bubble.

While Nama is preparing to launch the scheme early next year, informed sources within Government say it has yet to be signed off. Mr Noonan said the details were being “reviewed” and he would respond to Nama. He noted the scheme had been approved by Nama’s board.

The scheme has attracted criticism. OECD economist Christopher Andre told a conference recently that providing incentives had proved to be “counter-productive” in other countries.

Nama, for its part, insists the scheme is a short-term measure and will not interfere with the market. Officials point out that the move would bring in more taxes. If 5,000 houses or apartments were sold for €200,000 each, this could raise €135 million for the exchequer through VAT receipts.

The most the State could lose, according to Nama, is about €65 million. This is the difference between the amount raised in VAT from the sales and the €200 million which might be waived.

The Construction Industry Federation says it provides a template that could be adopted.

source: irishtimes.com

The Dublin Airport Authority (DAA) — whose €612,000-a-year chief executive Declan Collier departs for a new job at London City Airport next year — looks set to lose millions on a badly timed property joint venture with broke Nama client developer Bernard McNamara that was backed by Bank of Scotland.

Documents obtained by the Sunday Independent show that joint venture company Brooklyn Properties, in which the bank is the single largest shareholder, intends to sell off several office blocks and a site in Cork Airport’s Business Park as soon as possible.

“At December 31, 2010, the company’s property portfolio comprised four buildings, which are fully constructed with leases attached; one property in the advanced stages of completion; and a development site.

“Subject to receipt of satisfactory offers, the directors’ intention is to dispose of these assets once construction is complete rather than hold them for their investment potential,” the documents say.

While the company had spent €30.9m on developing the offices by the end of 2008, €5.3m was written off in 2009 and 2010.

Although it is unclear how much of this the bank might recover from any sales, commercial property values have plummeted by an estimated 65 per cent since the peak, suggesting that the shareholders in the company could lose up to €20m in total.

Bank of Scotland, which has a 38 per cent shareholding — and which began winding down its Irish business last year — is owed €23.6m by Brooklyn Properties, documents show. The DAA owns the second largest shareholding at 37 per cent.

Most of the money was spent after the firm increased its bank loans from €3.7m to €23.1m in 2008, as the property market was beginning to collapse and just as the first stages of the global economic crisis were beginning to take shape.

At least one office block and a number of floors in several others owned by the company are vacant, according to the listings of agents HT Meagher O’Reilly.

Elsewhere in Cork Airport Business Park, buildings are occupied by multinationals including Amazon, BNY Mellon and GlaxoSmithKline.

While Mr Collier has pocketed the second-highest pay package of any semi-state director in recent years, the DAA has a chequered history when it comes to property development.

As this newspaper revealed last year, the DAA also became involved in an ill-fated deal with developer Liam Carroll, whose empire went into receivership in 2009 owing €1.2bn to a number of banks.

Their joint venture, Turckton Developments, borrowed €33.75m from National Irish Bank to develop land close to Dublin Airport.

And in April 2008, former Taoiseach Bertie Ahern unveiled a doomed €4bn masterplan for the development of apartments, hotels and offices at Dublin Airport City on 2,500 acres of land surrounding the airport.

- John Reynolds

source: independent.ie

There was a time when a property worth €25,000 was dinner party talk — if it was in outer Bulgaria. Next week, UK auctioneers Allsop host their fourth auction at the Shelbourne Hotel in Dublin, selling 112 properties for up to 75 per cent below peak prices to mostly cash buyers. But where are the biggest bargains?

At €21,000, the property pictured above, in Beechwood Park, near Convoy, Co Donegal, is one of Ireland’s cheapest. It boasts three bedrooms and a front garden in a newish estate where other properties are on sale for up to €175,000.

Another house for sale comes in at €25,000. This property in Tuam, Co Galway, offers two bedrooms, a pitched roof and a lush little garden. You get four bedrooms for €26,000 in Enniscorthy for a corner house. End of terrace, it features a reception room, utility room and yard.

One property in Dublin is available for a €50,000 reserve price. A mid-terrace house with a rear garden, it’s just 7.5km from the city centre.

You don’t have to go to auction to get a steal, though. A detached house in Nenagh, Co Tipperary, can be purchased for €25,000 or financed at €83 a month on Daft.ie. It has three bedrooms and three bathrooms, but needs a bit of work.

For €30,000, you get an acre of land, a shed and a 90sqm three-bed cottage in Tunnyduff, Co Cavan, on Daft.ie.

“Prices are unlikely to bottom out,” said Ronan Lyons, an urban economist at Oxford University. “Unless credit returns to the market and the banks start lending again they will drop further. It’s dangerous to overshoot on the way down as it could potentially cause another bubble.” Ouch.

- Barbara McCarthy

source: independent.ie