Irish Life moves to halt investor exodus

Green_Bear · January 27, 2008, 11:17pm

https://www.cartoonstock.com/newscartoons/cartoonists/mgt/lowres/mgtn48l.jpg

Irish Life has frozen its flagship Irish property fund, which owns €1 billion worth of prime retail and office developments, after a rush for the exit by investors.
The move will hit investors withdrawing their money from the fund, which owns properties including St. Stephen’s Green shopping center in Dublin, and Airdale retail park near Dublin Airport.
Irelands largest insurer has suspended redemptions for up to six months, where previously investors would have had immediate access to capital.
Irish Life has pinned part of the blame on speculators, who began bailing out of property as soon as investment growth began to slow. “Irish property has performed well in the past few years and this has attracted large numbers if investors, some of whom had a short term outlook,” it said. “But with a slowing of growth rate there has been an increase in encashment volumes.”

Irish Life moves to halt investor exodus
Niall Brady, Sunday Times, January 27, 2008

2Pack · January 27, 2008, 11:26pm

The fact that ILP told nobody ( officially) that the fund has dropped 12% in Asset Value in the past 3 months would have nothing to do with anything would it ??.

Only well connected speculators would have heard this . The sheep are now locked in , the wolves have their ca$h .

verbatim · January 27, 2008, 11:59pm

Also in that article, Irish Life lays the blame squarely on Hibernian, saying that it was the 12.5% automatic mark-down on encashments in Hibernian’s Irish property fund which triggered the stampede.

I wonder if Irish Life’s Terms and Conditions don’t allow for mark-downs.

kerrynorth · January 28, 2008, 12:04am

There is also an article in the Sunday Times about a looming oversupply in the commercial market. Treasury Holdings were mentioned in particular as having their bare asses hanging out of window on this one with unlet spec developments. I’ll post up the data in the article tomorrow.

CelloPoint · January 28, 2008, 12:12am

Green Bear:

https://www.cartoonstock.com/newscartoons/cartoonists/mgt/lowres/mgtn48l.jpg

Irish Life has frozen its flagship Irish property fund, which owns €1 billion worth of prime retail and office developments, after a rush for the exit by investors.
The move will hit investors withdrawing their money from the fund, which owns properties including St. Stephen’s Green shopping center in Dublin, and Airdale retail park near Dublin Airport.
Irelands largest insurer has suspended redemptions for up to six months, where previously investors would have had immediate access to capital.
Irish Life has pinned part of the blame on speculators, who began bailing out of property as soon as investment growth began to slow. “Irish property has performed well in the past few years and this has attracted large numbers if investors, some of whom had a short term outlook,” it said. “But with a slowing of growth rate there has been an increase in encashment volumes.”

Irish Life moves to halt investor exodus

Niall Brady, Sunday Times, January 27, 2008

Great move there lads. That’s really going to restore confidence in IL&P, especially with all the rumours going around.

2Pack · January 28, 2008, 12:15am

I seeeee, " Mark To Market " at its most literal is whats afoot then .

Either

allow withdrawals and cream then for 12%

or

Block withdrawals and mark up that 12% instead .

oilman · January 29, 2008, 10:02am

" blamed the investors for moving on after growth slowed"

wow …no way…really ?

ewd3 · January 29, 2008, 5:42pm

INVESTORS SEEKING HIGHER RETURNS!!!

THAT’S CHEATING

whizzbang · January 29, 2008, 10:57pm

How unpatriotic!

xman · January 30, 2008, 6:14am

These redeemer people are faint-hearted I tell you. FAINT-HEARTED.