IL&P a safer bet ?

petergdub

I have the wherewithal to take a punt either via my spread account (IGIndex) or traditional share purchase.
I am interested in IL&P as they don't appear to have the sword of nationalisation hanging over them.
Does anyone have any opinions on this stock ?

ixus

Wouldn't touch them, but then, I wouldn't touch any Irish bank....

IL&P property values drop by 40 per cent

Irish Life & Permanent (IL&P) has suffered a €1.4 billion hit on its investment properties after writing down their value by almost 40 per cent in response to the property crash.

Details of the write down emerged last week as the government announced plans to acquire bad property loans from the country’s banks, with estimates that the loans would be transferred at discounts of between 15 and 50 per cent of their current book value.

The investment property portfolio, which is held by unit-linked funds on behalf of the banking and life assurance company’s clients, consists primarily of commercial and retail buildings in Ireland and Britain.




IL&P carried out a ‘‘fair value adjustment’’ to its investment property holdings in recent months, calling in an independent appraiser to reassess the value of its properties to take account of falling occupancy and rental levels.

In its annual report, published last week, the company said the value of its investment properties stood at €2.3 billion, after adjusting values downwards by more than €1.4 billion.

But it also warned that it could receive even less than this if the properties were put up for sale.

‘‘Many properties currently on the market involve vendors who are compelled to sell or purchasers who will only buy at discounted prices. Actual proceeds of property disposals in a forced sale may be significantly lower than the fair value,” the company said in its annual report.

Citing ‘‘ongoing turmoil and instability’’ in financial markets, IL&P said property markets around the world were experiencing ‘‘volatility and uncertainty’’.

‘‘In this environment, prices and values are experiencing a period of heightened volatility while the market absorbs these various issues and reaches its conclusions,” it said.

The company also said the value of its investment property holdings had fallen from €3.6 billion in December 2007 to €2.3 billion in December 2008. It acquired properties worth €457 million during the year and disposed of properties worth €310 million.

Tipsy Mac

They lobbed billions in to Anglo Irish to help cook the books, can't be a sign of an institution worth investing in.

Bearcat

Thats then this is now....they are not subject to nationalization.....worth a punt....the word investment though is hard to say.