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Archive for March 12th, 2010

Such is the conclusion from an investor’s update reported on in today’s Irish Independent which says that a 52-acre development site in Shankill, Dublin originally acquired for €52m is now worth 5c in the euro or the equivalent of €50,000 an acre, not totally dissimilar to the €100,000 an acre asking price for a site in Rathangan reported earlier this week.

Of particular significance are the reported comments from the investor’s report that

“NAMA is likely to be the only institution that will have the capacity to provide development finance to build out development projects and thereby provide some capacity for return.”

The update speculates that it will take five years to absorb the existing stock of apartments in Dublin, with Tallaght and Sandyford the main areas of oversupply.

The update says buyers have “moved away” from apartments to good-sized traditional houses.”

The investor’s report is attributed to Davy Investors who declined to comment on the Indie report yesterday.

Prominent NAMA arch-critic David McWilliams today decries the greed of those who invested in the scheme apparently hoping for 17pc returns and wonders if this asset is typical of either NAMA assets or more specifically is the type of asset on which Anglo’s loan of €10bn from the Central Bank of Ireland is secured.

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