Kennedy Wilson and Owner Management Companies

jd

From
http://www.irishtimes.com/business/sectors/commercial-property/kennedy-wilson-believes-retail-property-market-at-bottom-1.1671125

He said the firm would concentrate on trying to acquire more “broken” schemes, where it could gain control of the management companies for the apartments.

It's not completely clear on what he means by "broken" schemes, but I'd certainly be concerned if I lived in one such scheme and Kennedy Wilson took control of the OMC!

Lantus

Its hard to say exactly what he means by this but I would imagine he is referring to developments where the OMC is defunct and not operating properly or where the entire block is in nama or up for sale. What he wants is to buy the property to generate rental income primarily, not just take over the OMC. Control of the OMC gives him control of the total development allowing investment and control to ensure that the highest rental yields can be achieved.

Residents should have control over director appointment's (although in some cases they don't until all units have been sold or the transfer of common areas is complete) so Kennedy Wilson wont be taking over just like that and of course he wouldn't personally be doing anything!

P. Breathnach

My guess that he meant developments where there would be other owners in addition to Kennedy Wilson. I looked at an apartment in a block where most of the units were held by NAMA. In my opinion, that was a good thing. A major financial institution might be a better co-owner than somebody in NE and struggling financially.

Marcusm

The article is odd; I don't think that they can control OMCs through multiple unit ownership or is it only the original developer whose voting power is limited to a single vote under MUD Act. In the Gasworks block they own (the Alliance, the old gasometer shell), they have to work with the OMC for the entire development up to and including the common areas of the building itself. They seem to do so based on my experience as a 5 year tenant. I can see them looking to split apart from the overall management scheme where practicable to do so (eg where apt residents from other blocks don't require common area access). Otherwise I can't see them being minority occupant s - it hits against their business model.

P. Breathnach

My understanding of the MUD Act is that it is one unit, one vote. Accordingly, if one person owns 22 units, that person has 22 votes.