Threat to €500m of investment deals
Published 23/02/2011 | 05:00
Up to €500m worth of Irish commercial property sales could be lost this year because of the promises by the Fine Gael and Labour parties to ban upward only rent reviews in leases that have already been agreed.
John Moran, managing director of Jones Lang la Salle, says that he had forecast at the beginning of the year that €500m of investment properties would have been bought this year. "Now I believe that figure could be zero," he adds.
Meanwhile, the Institute of Professional Auctioneers and Valuers (IPAV) whose members include a number of elected politicians, has rowed in behind the Society of Chartered Surveyors in the campaign to stop the two parties from introducing the ban.
IPAV president Paul Reynolds said that both proposals will -- and have already -- created uncertainty in the market.
He cited reports that two British investment funds have dropped plans to buy the Liffey Valley Shopping Centre in Dublin.