Irish property investors will remain largely untouched by the current tightening of credit markets, thanks to high private wealth levels and close relationships with their bankers, according to a report published on Tuesday by real estate financier Eurohypo. As a result, they will remain a force to be reckoned with in cross-border transactions across Europe, where they are expected to replace the more traditional investors in moving into higher added-value development activities.
Irish property investors will remain largely untouched by the current tightening of credit markets, thanks to high private wealth levels and close relationships with their bankers, according to a report published on Tuesday by real estate financier Eurohypo. As a result, they will remain a force to be reckoned with in cross-border transactions across Europe, where they are expected to replace the more traditional investors in moving into higher added-value development activities.
Entitled 'The Irish Investors: A Renewed Role in the Investment Market?', the report looks at how the strategy of Irish property investors has changed over the past decade from one of wealth management - that is to say defensive, looking for sustainable cashflows and reliable locations - to one whereby value creation and the generation of market liquidity is becoming more important.
The report cites the Quinlan investment in Paddington as a case in point. Quinlan recently agreed to buy a 50% stake in a speculative office development in Paddington for GBP 100 mln (EUR 135 mln). Other examples include the recent Ballymore investments in the Vauxhall development and the investment of Treasury Holdings in Battersea. ‘In these examples, the Irish investors ultimately played the role of liquidity providers, allowing the developments to gain a new momentum and making the investors direct value creators,’ the report notes.
Over the first nine months of 2007, Irish investors spent around GBP 5.7 bn (EUR 7.7 bn) on overseas property, with the UK among the most popular investment destinations. Full-year investment in the UK is expected to reach around GBP 3.3 bn (EUR 4.4 bn).
Click on the link below to read 'CBRE challenges fears of severe Irish property slump'
