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 Post subject: Irish builder gambles €100m on property market revival
PostPosted: Sun Jan 05, 2014 10:04 am 
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Irish builder gambles €100m on property market revival - Nick Webb -> http://www.independent.ie/business/iris ... 88570.html

Quote:
While more desirable parts of Dublin city and county experienced frenzied demand for family homes, the rest of the country didn't -- with prices dropping in the less chi-chi parts of the country.
But while the savviest investors have been in and made their money early, others arriving later to the game may not be so lucky.
"We are starting to exit because the value is diminishing, what people are paying doesn't stack up," Greg Kavanagh added.
"There are auctions that we haven't attended now because there's a herd mentality and people are just ploughing in."
Now that sounds somewhat familiar.

there is more


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Sun Jan 05, 2014 10:55 am 
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So the future of the construction industry never depended on saving the old boys and new blood is attracted by opportunity? Who'd have thought that? Well apart from the old boys still salaried by NAMA.


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Sun Jan 05, 2014 4:46 pm 
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BuMble wrote:
So the future of the construction industry never depended on saving the old boys and new blood is attracted by opportunity? Who'd have thought that? Well apart from the old boys still salaried by NAMA.


At least NAMA was partially successful - luckily for us taxpayers this horrible new breed of house builders, providing nasty new builds to increase supply, have been delayed from entering the market for 3-5 years. Luckily, it will be another 12 months before this new supply arrives on the market.


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Sun Jan 05, 2014 5:11 pm 
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johnnyskeleton wrote:
BuMble wrote:
So the future of the construction industry never depended on saving the old boys and new blood is attracted by opportunity? Who'd have thought that? Well apart from the old boys still salaried by NAMA.


At least NAMA was partially successful - luckily for us taxpayers this horrible new breed of house builders, providing nasty new builds to increase supply, have been delayed from entering the market for 3-5 years. Luckily, it will be another 12 months before this new supply arrives on the market.

Bad news. The new supply is the old supply. The vast majority of the developments quoted were half built and have simply been sucked up for buttons, will be tarted up and sold into a hot market.


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Sun Jan 05, 2014 8:44 pm 
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Much as I wish it were true, I have to say the whole thing sounds like a puff piece to me. The numbers don't add up. I don't think I'd call Pat McDonagh "Ireland's most successful software tycoon" either. Doesn't help that the interview took place in "DuBlin".

Also, what does this mean:

Quote:
It was a mixture of equity and investors


And the difference is?

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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Sun Jan 05, 2014 8:57 pm 
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Mantissa wrote:
Much as I wish it were true, I have to say the whole thing sounds like a puff piece to me. The numbers don't add up. I don't think I'd call Pat McDonagh "Ireland's most successful software tycoon" either. Doesn't help that the interview took place in "DuBlin".

Also, what does this mean:

Quote:
It was a mixture of equity and investors


And the difference is?


The story is genuine - they have bought about 20m in sites and Pat McDonagh (ex. Riverdeep founder) is an anchor investor. Pat's wealth is very hard to determine (the Riverdeep story is very complicated) but he did get out with material money before the collapse.

The parts that are 'less genuine' relate to the 100m (never spent close to this) and the 13m being worth 30m (Euro 100k a plot in Carrickmines?! - that is pure Sherry Fitz spin who I would guess are the 'planters' of this article).

Buying into the 'green jersey' ERSI 20,000 units per annum need when there are +100,000 of units that are vacant / off-market / occupied by borrowers paying little or no mortgage, does require guts (+ where most of the 56,000 2013 jobs created are a fabrication http://www.finfacts.ie/irishfinancenews/article_1026894.shtml).

However, hats off to Greg Kavanagh who did buy miles out of the city in 2011 (needed serious guts for this) - a good story of entrepreneurialism and not a single Irish bank involved (they only come in at the bubble stage).


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Sun Jan 05, 2014 9:04 pm 
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I mentioned this in the anecdotal evidence thread recently.

5000 units is 5000units. A big increase in supply coming.

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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Sun Jan 05, 2014 9:25 pm 
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ixus wrote:
I mentioned this in the anecdotal evidence thread recently.

5000 units is 5000units. A big increase in supply coming.


As I said, I really hope it's true, but I seriously doubt it.

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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Mon Jan 06, 2014 12:09 am 
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I see some of the new investors are described as ballsy.


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Mon Jan 06, 2014 10:18 am 
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observer35 wrote:
Pat McDonagh (ex. Riverdeep founder) is an anchor investor. Pat's wealth is very hard to determine (the Riverdeep story is very complicated) but he did get out with material money before the collapse.
Yes he was bought out of Riverdeep by Barry O'Callaghan, plus McDonagh had made decent money in an earlier venture, CBT Systems, iirc.


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Mon Jan 06, 2014 10:41 am 
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Mantissa wrote:
Much as I wish it were true, I have to say the whole thing sounds like a puff piece to me. The numbers don't add up. I don't think I'd call Pat McDonagh "Ireland's most successful software tycoon" either. Doesn't help that the interview took place in "DuBlin".

Also, what does this mean:

Quote:
It was a mixture of equity and investors


And the difference is?


Equity is invested capital and investors are the people who hold it. :wink:
A fancy way of saying "people and their money".
I suppose it might be a bit strange, were the capital to turn up without the investors and pretty pointless the other way round.
:-GC

Ardillaun wrote:
I see some of the new investors are described as ballsy.


They're not only ballsy, but apparently even savvy and gutsy. The journalist also appears to be clichéy. :roll:

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Book I, Chapter X, Part II,


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Mon Jan 06, 2014 1:21 pm 
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Quote:
The journalist also appears to be clichéy.

Nah Clichy is still signed with Man City though the transfer window is now open :-GC


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Mon Jan 06, 2014 7:37 pm 
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Saw a sign today, these guys seems to have bought the site on grand canal st opposite 3fe. Good site.

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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Mon Jan 06, 2014 9:40 pm 
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Somebody must have had a word with Nick Webb during the week, this article is a little more upbeat than last Sunday's!


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 Post subject: Re: Irish builder gambles €100m on property market revival
PostPosted: Tue Jan 07, 2014 7:55 am 
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Snatched from boards
http://www.boards.ie/vbulletin/showpost ... stcount=56

Greg Kavanagh has been around before
http://www.solocheck.ie/Irish-Company/S ... ted-415820
http://www.solocheck.ie/Irish-Company/S ... ted-400708


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