REIT It And Weep

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CEO of Hibernia REIT Kevin Nowlan

Ireland’s biggest private landlord is Ires REIT (real estate investment trust).

According to the Sunday Business Post, it has spent almost €600 million acquiring a portfolio of some 2,377 apartments in Ireland.

Readers may recall the documentary, The Great Irish Sell Off, by editor of the Sunday Business Post Ian Kehoe.

In it, David Ehrlich, chief executive of Ires Reit, showed Mr Kehoe a two-bedroom apartment next to the Facebook offices in Dublin which was renting for €2,800 a month, in a block which has 99 per cent occupancy.

Further to this…

Readers may recall the 2015 documentary by David McWilliams, Ireland’s Great Wealth Divide.

In it, Mr McWilliams spoke to Kevin Nowlan, CEO of Hibernia REIT, a real estate investment trust which had raised over €600million from a variety of investors, including George Soros, by helping them find bargain properties in Ireland.

They had the following exchange:

Kevin Nowlan: “….a lot of property ends up in the Irish Times or in the Irish Independent for sale by receivers or whatever. We basically said we know enough people in Dublin to be able to go and buy the properties, without having to go to auction. Or having to go to the market. And we’ve done 18 deals, and 16 of them we’ve done off market. We’ve bought debt, we’ve, you know, we’ve done quiet deals with people, we’ve done deals with banks, we’ve done them in a variety of different ways. If you buy something in an active vibrant economy, below what it actually costs to replace it, you should be in pretty good shape to make money.”

David McWilliams:Who, just in that case, who pays the outstanding debt then?”

Nowlan:Nobody.”

McWilliams:Not the taxpayer?

Nowlan:Well yes, I mean it is being factored in now. You move back three years and it’s factored into the bailout. I mean that…”

McWilliams: “So there is a massive transfer of wealth from the average Joe who pays tax to the incredibly wealthy guy who sees the opportunity.”

Nowlan: “He sees the opportunity and he works, you know, let’s say he bought, you know let’s say they bought those loans for 35c in the euro, or 30c in the euro and they sell them for 40c, they make their 10c and they move on. And it’s basically a bulk business model.”

McWilliams: “But the difference is the 35c in the euro means somebody else has paid the 65c, the 65c – and that’s the taxpayer.”

Nowlan: “The 40 to the 80, unfortunately, ends up on our…”

McWilliams: “On the taxpayer.”

Nowlan: “On our national debt.”

McWilliams: “The taxpayer ends up subsidising or financing or, in some way, underwriting the opportunistic move which is totally legal and totally within their rights of the already wealthy.”

Nolwan: “Yeah. Basically.”

Further to this…

This morning.

RTÉ reports:

The value of the property portfolio held by stock market listed Hibernia real estate investment trust or REIT rose by 9.9% to €1.167 billion over the year to the end of March.

Full year results published by Hibernia show it delivered a total property return of 14.5%.

That was considerably higher than the 11.2% return here for the property market as a whole as measured by the Society of Chartered Surveys IPD property index.

The rent roll from its portfolio of commercial properties was 24% higher at €48.3m amid strong demand in the Dublin office market in particular where rents are now past Celtic Tiger levels in some areas.

Hibernia chief executive Kevin Nowlan described the results as strong and said the company was proposing a 47% increase in its dividend to 2.2 cent, up from 1.5 cent the previous year.

He said dividends would become an increasingly important part of shareholder return for Hibernia investors in future as income from its portfolio increased.

Hibernia’s top tenants include the Office of Public Works from which it generates €6.6m in annual rent and Twitter, which pays €5.1m.

Forty seven per cent.

Hibernia REIT proposes 47% dividend hike (RTE)

Previously: Good Rooms Gone Bad

Related: Simon Coveney consulted state’s biggest landlord on rent caps (Barry Whyte, Sunday Business Post)

54 thoughts on “REIT It And Weep

    1. JIMMYJAMES

      As Willie stated, its legal. Though obviously NAMA’s stance in relation to releasing land & property over the last decade, for both social and private housing development was…ah fk’em…the big boys are into town & they’ve got the readies.

      This kinda commerce is the only thing that gives Noonan & co a semi.

    2. nellyb

      vs 6-8% average – our taxpayers @r$eS are on the hook for another bailout. Sell and run if you can.

  1. JIMMYJAMES

    Ignore that folks…Just listen to Leo, its any person not rising at 5am to pay / save for a 3 bed semi, car & health insurance that’s robbing your of your hard unearned tax.

        1. mildred st. meadowlark

          No, his style is much more rough and ready for all he pretends to be a Lord.

          1. Brother Barnabas

            Looks like I’m going to have to start giving sexy lessons around here. You’ve all a lot to learn.

            First up is Frilly.

          1. Lord Snowflakee

            Well, ask Barnabas! Define ‘cuddler’ mildred and I’ll let you know. People in my intimate circle have been known to refer to me as a ‘bear’ though if that helps.

  2. Jake38

    Buy cheap, sell dear. I know it’s a totally new concept to BS but its a general feature of a capitalist economy.

    1. Frilly Keane

      that concept is not lost
      on anyone
      so stop acting the gimp

      is the ALL losses covered by the General Exchequer
      that is not a General Feature of a Capitol Society

      if it is
      I’m owed a few bob

    2. JIMMYJAMES

      Wrong site m8, Boards.ie is your other tab, loadsa folk over there waiting to be schooled by you.

    3. ahjayzis

      Apply your logic to the state we all pay into for once. The state bought dear and sold cheap – and you’re happy with that because some foreign oligarch can buy a new wife and house. Definition of a useful idiot.

  3. Kolmo

    Well, isn’t that great for them..who has 2800 euro a month after tax for a woefully built shite-box apartment?

    Taxpayer = Nobodies.

    Kip.

    1. Adam

      You’re looking at well-paid tech-workers in the likes of Facebook, Google etc. who don’t have the likes of a family or a car to worry about.

  4. MoyestWithExcitement

    McWilliams: “The taxpayer ends up subsidising or financing or, in some way, underwriting the opportunistic move which is totally legal and totally within their rights of the already wealthy.”

    Nolwan: “Yeah. Basically.”
    ————————————–

    And people who’ll never come close to joining his club will defend this.

    1. Sheik Yahbouti

      And that’s the biggest joke of all, Moyest. Povs and sem-Povs (like meself) will apparently fight to the death to preserve the right of Oligarchs and vulture capitalists to prey on the rest of society. You actually couldn’t make it up, it would be rejected as too far fetched.

  5. Holden MaGroin

    So…..

    Property is built.

    Price of property drops in economic collapse.

    Government buys property with taxpayer funds because: N.A.M.A.

    Government sells property at loss to private business.

    Private business sells property of for higher price. Making a profit.

    Government left to repay difference between price they bought at and price they sold for to their own debtors.

    Loss is paid for by taxpayers.

    Did I understand correctly?

    1. Frilly Keane

      you forgot the builders
      borrowed mad money
      built shyte gaffs
      sold them for even madder money

      then got themselves adjudicated bankrupt
      all discharged
      and none of them in Hotel Room Accommodation like the suckers that bought their properties

    2. Cian

      No.

      1. Property is built.
      2. Price of property drops in economic collapse.
      3. Government buys property with taxpayer funds. Also **government pours money into banks.**
      4. Government sells property to private business. If government sells for more than it bought – government makes profit.
      5. Private business sells property of for higher price. Making a profit.

      <— it's at point 3 above, where the taxpayer's money gone. It is covering the gap between the original bank price and what government bought for.

    1. JIMMYJAMES

      He prob felt some type of twinge in his trouser department, prob first in a long time, prob his last.

      Say he also had a wry grin to himself when he heard the news about fitzy.

      1. anne

        The people of Limerick love him according to RTE though..they sent their reporter down when he announced his imminent retirement. They only happen to catch FG constituency workers-members in one pub, funnily enough.

        They didn’t bother sending their reporter out to people who are being kicked out of their apartments by vulture funds. I’d like to hear what they have to say about Baldy.

  6. nellyb

    Did McWilliams think Nowlan was Noonan? If Noonan gives zero fupps about taxpayers, why does McWilliamns think Nowlan should give them and for free??? It’s a lot to ask!
    David, give us a documentary about 2019 crisis instead of asking relevant questions irrelevant people.

  7. anne

    How long was Kevin Nowlan with NAMA again, before he went back to the family business?

    Where’d he get the information for these quiet deals again?

    It’s disgusting that we have this massive transfer of property to a few individuals while you have a housing crisis and sky rocketing rents. It’s just disgusting what’s being done to ordinary people.

    FG need to go.

  8. Clampers Outside

    But, but, but.. the left said Soros a good guys, he funded marches and protests and everything.

    I wish that were sarcasm. The left will keep taking his money regardless.

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