Any developments being bought by investment funds?

_ZeeK_ · 16-05-2021 12:50am #1

The issue of investment funds buying up whole developments is a very topical issue at the moment (though it has been happening for years now).

Just wondering if this type of activity is confined to Dublin and surrounding commuter areas or if anyone is aware of this happening in Galway?

_ZeeK_ · 16-05-2021 12:53am

I had heard Radharc na Greine on the Monivea Road was bought en masse by the council (though it's possible it was bought privately then leased out to the council) for social housing.

Property price register confirms bulk purchases:
https://www.propertypriceregister.ie/Website/npsra/PPR/npsra-ppr.nsf/PPR-By-Date&Start=1&Query=%5Baddress%5D=*radharc%20na%20greine*%20AND%20%5Bdc_county%5D=Galway&County=Galway&Year=&StartMonth=&EndMonth=&Address=radharc%20na%20greine

It had been intended for private purchases:
https://gwpl.ie/project/glass-house-residential/ (Sherry Fitz was listed as agent)

..but I'm not sure if anyone got to buy any.

zell12 · 16-05-2021 2:15am

A decade ago, entire estates
https://connachttribune.ie/buy-a-whole-neighbourhood-estate-on-market-for-2m/
https://www.thecomergroup.com/development/moneenageisha-court
or
https://www.independent.ie/irish-news/once-valued-at-700000-each-now-all-14-townhouses-are-going-for-just-twice-that-28893874.html
https://www.thecomergroup.com/development/bun-na-leaca

aw · 16-05-2021 8:44am

Are there many housing estate developments in progress at the moment? I don't think there are! Part of the problem is that lack of supply.

Large developments like Bonham Quay, and the Crown site will surely remain developer/investor owner. I don't see those going to open market.

Snoozecruise · 16-05-2021 9:29am

aw wrote: »

Are there many housing estate developments in progress at the moment? I don't think there are! Part of the problem is that lack of supply.

I don't believe there is as I am keeping my eye out. However if you hear of anything please keep us posted! Lack of supply is a huge issue. Hopefully alot of office blocks can be converted to apartments if going idle due to WFH.

ben.schlomo · 16-05-2021 9:30am

aw wrote: »

Are there many housing estate developments in progress at the moment? I don't think there are! Part of the problem is that lack of supply.

Large developments like Bonham Quay, and the Crown site will surely remain developer/investor owner. I don't see those going to open market.

One off the Monivea Rd backing on to East Utd, earmarked as social housing. Another started on the Old Ballybrit Rd/Ballybane More, don't know anything about it.

16-05-2021 10:53am

_ZeeK_ wrote: »

I had heard Radharc na Greine on the Monivea Road was bought en masse by the council (though it's possible it was bought privately then leased out to the council) for social housing.

Property price register confirms bulk purchases:
https://www.propertypriceregister.ie/Website/npsra/PPR/npsra-ppr.nsf/PPR-By-Date&Start=1&Query=%5Baddress%5D=*radharc%20na%20greine*%20AND%20%5Bdc_county%5D=Galway&County=Galway&Year=&StartMonth=&EndMonth=&Address=radharc%20na%20greine

It had been intended for private purchases:
https://gwpl.ie/project/glass-house-residential/ (Sherry Fitz was listed as agent)

..but I'm not sure if anyone got to buy any.

Yeah we had registered interest for these, was waiting for the viewings etc then they were all taken by the council.

"Unfortunately as you may have seen the recent articles in the local newspapers, the local authority (Galway City Council) has acquired the entire development for social & affordable housing therefore there will not be any properties for sale on the open market.

Apologies for any inconvenience caused."

_ZeeK_ · 16-05-2021 11:55am

aw wrote: »

Are there many housing estate developments in progress at the moment? I don't think there are! Part of the problem is that lack of supply.

Large developments like Bonham Quay, and the Crown site will surely remain developer/investor owner. I don't see those going to open market.

There are but a little outside town in areas like Moycullen, Barna, Oranmore, etc.

If you’re interested in one of these, any risk you’ll be a) gazumped by a fund or b) find yourself in an estate that’s half owned by an institutional landlord?

wily minx · 16-05-2021 2:52pm

There's a good amount of building work going on in Knocknacarra and surrounds. Clybaun road, they've been rock breaking there recently for a new development, very noisy. By the Ballymoneen roundabout, one phase finished and sold I think, more work going on. Upper Ballymoneen those boxy looking units seems very near completion. At the very top of Clybaun road (at the Mincloon/Boleybeg cross roads) they've just started clearing a site, I looked at the council planning website and there's permission for a development there.

_ZeeK_ · 16-05-2021 11:33pm

zell12 wrote: »

A decade ago, entire estates
https://connachttribune.ie/buy-a-whole-neighbourhood-estate-on-market-for-2m/
https://www.thecomergroup.com/development/moneenageisha-court
or
https://www.independent.ie/irish-news/once-valued-at-700000-each-now-all-14-townhouses-are-going-for-just-twice-that-28893874.html
https://www.thecomergroup.com/development/bun-na-leaca

Seems a bit lousy alright. Could have been developer owned however?

16-05-2021 11:43pm

https://eirigi.org/trackthevultures

Notch000 · 17-05-2021 9:57am

the local councils are the biggest competitor to any new home buyers, driving up prices etc this investment fund buzz is just a smoke screen to whats really going on.

_ZeeK_ · 17-05-2021 8:28pm

Notch000 wrote: »

the local councils are the biggest competitor to any new home buyers, driving up prices etc this investment fund buzz is just a smoke screen to whats really going on.

To an extent. I think the funds are a proxy for the councils. The funds purchase, the councils lease for 25years at a rate that means they’ll end up paying more than the cost of buying and yet not own the asset at the end of the term. Poor value social housing. In both cases, would-be buyers lose.

_ZeeK_ · 17-05-2021 8:31pm

[Deleted User] wrote: »

https://eirigi.org/trackthevultures

This is just what I was looking for. Thanks a mill.

17-05-2021 9:59pm

_ZeeK_ wrote: »

To an extent. I think the funds are a proxy for the councils. The funds purchase, the councils lease for 25years at a rate that means they’ll end up paying more than the cost of buying and yet not own the asset at the end of the term. Poor value social housing. In both cases, would-be buyers lose.

Its a case of lease 1,000 homes or buy 100

When the waiting list is thousands long you can see why they go with leasing.

No doubt folks would be whining if they bought 100 instead of leasing 1,000

Mrs OBumble · 17-05-2021 10:39pm

ben.schlomo wrote: »

One off the Monivea Rd backing on to East Utd, earmarked as social housing. Another started on the Old Ballybrit Rd/Ballybane More, don't know anything about it.

Another off Siobhan McKenna Rd - planning app here: https://galwaycity.maps.arcgis.com/apps/webappviewer/index.html?id=7b49f665cf124b988485933a8e738ce2 ( I don't know if it's been purchased for social housing or not, the location would fit, though).

_ZeeK_ · 22-06-2021 11:06pm

Hundreds of new apartments in Galway will not be available to buy

zell12 · 23-06-2021 6:51am

https://twitter.com/RoryHearne/status/1407340995885338635?s=20

Quadrant Estate Real Estate Fund is funding backer.
On Irish Strategic Investment Fund www.isif.ie you can see they are funding them & other build-to-rent investors like Urbeo, Bartra, Pearl, Hines

Mrs OBumble · 23-06-2021 11:03am

_ZeeK_ wrote: »

Hundreds of new apartments in Galway will not be available to buy

Not quite sure what the problem is: they will be rented out, most likely to social housing tenants.

I doubt many people would want to but there, due to the likely proportion of social housing units in the development. So better for the whole development to be rental.

ben.schlomo · 23-06-2021 11:22am

Mrs OBumble wrote: »

Not quite sure what the problem is: they will be rented out, most likely to social housing tenants.

I doubt many people would want to but there, due to the likely proportion of social housing units in the development. So better for the whole development to be rental.

The proportion of social housing units is 35/345.

23-06-2021 11:24am

Are there many apartments available to rent in Galway?? I do not see a huge amount on daft.

Mrs OBumble · 23-06-2021 12:11pm

ben.schlomo wrote: »

The proportion of social housing units is 35/345.

That's the minimum allocation to council ownership.

But in many new developments, the council also leases far more apartments, which stay developer owned, and uses them for social housing tenants. Or private tenants lease them, but supported by HAP.

23-06-2021 5:42pm

_ZeeK_ wrote: »

Hundreds of new apartments in Galway will not be available to buy

Probably about 2 grand a month for a two bed so if this development follows trends in Dublin.

_ZeeK_ · 24-06-2021 12:16am

Mrs OBumble wrote: »

Not quite sure what the problem is: they will be rented out, most likely to social housing tenants.

Not a super use of tax payer money - leasing apartments from a private fund for a long term and not owning the asset at the end of the term despite spending more than the cost of the unit.

Social housing is needed, no doubt, but this is not the way to go about it. The state needs to initiate a mass house building program like it did in the 60s

Any developments being bought by investment funds?

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