South African vulture fund targets cheap Irish houses

jetski

South African vulture fund targets cheap Irish houses
Neil Callanan


Three South African brothers have set up a 100 million-rand (€8.8m) vulture fund to raise equity from South African investors that will target Irish residential property.


The decision by South African investors to target the Irish property market marks a major turnaround from the years of the global property boom, which saw Irish developers to the forefront of developments in many South African cities, particularly Cape Town.


"In the view of the manager, further deterioration in certain target markets may occur in the shorter or medium term, which should present further investment opportunities for the Fund following its forthcoming capital raising," according to the executive summary of the fund's investment memorandum.


The fund was set up by the de Leeuw brothers, who are involved in property development, management and investment, and is known as the YDL European Property Fund. One of the brothers, Karl, is already based in Dublin where he works as a full-time property fund manager. He could not be contacted for comment last week.


The fund intends to "add value by developing property in Dublin – so giving higher returns – and purchasing apartments from other developers in areas close to new transport networks, if feasible".


The fund will initially target the Republic of Ireland and a second phase, if it proceeds, would invest in both the Republic and Northern Ireland as well as Poland.


September 7, 2008

http://www.tribune.ie/business/news/article/2008/sep/07/south-african-vulture-fund-targets-cheap-irish-hou/

jmayo

jetski wrote: »

South African vulture fund targets cheap Irish houses
Neil Callanan


The fund intends to "add value by developing property in Dublin – so giving higher returns – and purchasing apartments from other developers in areas close to new transport networks, if feasible".


The fund will initially target the Republic of Ireland and a second phase, if it proceeds, would invest in both the Republic and Northern Ireland as well as Poland.


September 7, 2008

http://www.tribune.ie/business/news/article/2008/sep/07/south-african-vulture-fund-targets-cheap-irish-hou/

What cheap Irish houses ?
IMHO our property is still expensive when compared to some other more stable economies.

mrgaa1

out of curiosity I went through DAFT.IE and randonly selected a few counties as listed below and then rather than picking the town with the most listings I selected the 2nd largest listing - some interesting houses on offer below 200k.
Tipperary: www.daft.ie/1382675
Carlow: www.daft.ie/1262118
Donegal: www.daft.ie/1403812
Offaly: www.daft.ie/1396472
Cavan: www.daft.ie/1390934
Dublin: www.daft.ie/1385930

So there are some keen prices out - especially that one in Donegal. So maybe there are some pickings to be had - who knows? Again I suppose its location, location.

bugler

Seems like they're jumping the gun if they're looking to acquire now.

ronbyrne2005

mrgaa1 wrote: »

out of curiosity I went through DAFT.IE and randonly selected a few counties as listed below and then rather than picking the town with the most listings I selected the 2nd largest listing - some interesting houses on offer below 200k.
Tipperary: www.daft.ie/1382675
Carlow: www.daft.ie/1262118
Donegal: www.daft.ie/1403812
Offaly: www.daft.ie/1396472
Cavan: www.daft.ie/1390934
Dublin: www.daft.ie/1385930

So there are some keen prices out - especially that one in Donegal. So maybe there are some pickings to be had - who knows? Again I suppose its location, location.

A fund would never purchase such properties and the ones they would buy in prime locations and would be whole blocks of apartments or whole floors. Yields are still crap compared to other locations around the world so this story is wishfull thinking more than anything.

DonJose

mrgaa1 wrote: »

out of curiosity I went through DAFT.IE and randonly selected a few counties as listed below and then rather than picking the town with the most listings I selected the 2nd largest listing - some interesting houses on offer below 200k.
Tipperary: www.daft.ie/1382675
Carlow: www.daft.ie/1262118
Donegal: www.daft.ie/1403812
Offaly: www.daft.ie/1396472
Cavan: www.daft.ie/1390934
Dublin: www.daft.ie/1385930

So there are some keen prices out - especially that one in Donegal. So maybe there are some pickings to be had - who knows? Again I suppose its location, location.

Talking about clutching at straws. The twin towns of Ballybofey and Stranorlar, Dongeal have a population of approximately 3000. There are 171properties for sale compared to 107 in Blanchardstown. Best of luck trying to sell a "bargain" property there.

Concerning the Dublin property, I grew up in that area, have you ever been to Jobstown??? €195k for a rundown property in one of the worst estates in Dublin. LOL

bangersandmash

mrgaa1 wrote: »

So there are some keen prices out - especially that one in Donegal. So maybe there are some pickings to be had - who knows? Again I suppose its location, location.

Keen prices? You correctly highlight that location is key, but do this after listing off a set of poorly-located properties. Not meaning to offend anybody but €195k for a semi-derelict 880sqft mid-terrace in Jobstown does not seem to be a "picking" from an investment point of view.

mrgaa1

As i said i randomly selected and I've no idea where/what jobstown is about - although going on statements listed earlier its not a place to be or to be in for too long.

In any event what it shows is that there are houses out there under 200k and for those living in them areas they can purchase. I realise that in Dublin prices are high and I think it shows that houses throughout the country are still well above 200k and don't look like coming down near that mark.

johnnyskeleton

mrgaa1 wrote: »

As i said i randomly selected and I've no idea where/what jobstown is about - although going on statements listed earlier its not a place to be or to be in for too long.

You might have heard of it - other Tallaght residents call it Nojobstown.