Wednesday 21 August 2019

Kavanagh warns of 'full-on' recession risks

Developer: Greg Kavanagh made a fortune from the Irish property market
Developer: Greg Kavanagh made a fortune from the Irish property market
John Mulligan

John Mulligan

Developer Greg Kavanagh has predicted that Ireland will be in a "full-on recession" if there is a hard Brexit and said it is a time to "be shy" about property deals.

He told the Irish Independent that he has "very little" going on in terms of transactions in the property market at the moment.

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"You'd want to be off your head to be doing anything," he said. "It's not a time to be overly optimistic."

He added: "The market is dead. There's a reason why I sold out."

Mr Kavanagh, from Arklow in Co Wicklow, has made a fortune from the Irish property market in the past decade.

He co-founded New Generation Homes in 2011 with Pat Crean, and it began buying up land around Dublin as the recession here approached its nadir.

The company spent as much as €300m buying those sites, in deals that were backed by investors including UK-based M&G Investments, part of Prudential.

In 2016, Mr Kavanagh reached a deal with New Generation Homes that saw him exit the business.

It was reported that Mr Kavanagh received as much as €150m from that transaction.

Under the terms of the deal, Mr Kavanagh agreed to sell his stake in the residential and commercial property assets held by the business.

While Mr Kavanagh retained the New Generation Homes brand, Mr Crean headed the new company holding the New Generation Homes assets, with the backing of M&G Investments.

Irish Independent

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