"European Retail Property Portfolio" being launched by Bank of Ireland.

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sally2007

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I saw something on the paper this morning about a new "European Retail Property Portfolio" being launched by Bank of Ireland.
Called into my branch today but they said they didn't have any info on it yet - to call back tomorrow.

Does anybody know anything more on it - charges / returns / etc etc??
 
The brochures and full details are just available today, I received mine by email from local branch
 
Any links?:) Is this link taking the mick.......Liverpool for retail. Am I missing something????? Eddie Hobbs all is forgiven, Brendan looks like a superstar choice compared to this.
 
MichaelDes, fill in the blanks for me, why are you not keen on liverpool.

From the detailed brochure;
"Expected portfolio weightings;
New Mersey UK 24%
Plaza Imperial Spain 42%
Other 34%"

The "other" would bother me, I'd like to know where the money is going...
 
How does the charging structure of the BOI product compare with Brendan?

I would be worried about the 34% other also- although the Brendan Investment seems to be 100% other!
 
They are detailed as follows;
A Plan Charges
Mgmt charge .75pa to total assets
Performance fee equal to 20% of surplus over the term above (surplus of 8%pa)

B Property charges
Estimated as follows;
Acquistion expenses 2.7% of property value
Prop mgmt expenses less than .8%pa of prop value
Disposal expenses .65% of prop value

But surely we'd expect BOI private banking to have decent returns so we're not too concerned about the costs...(pay for what you get princ)
 
8till8 said:
They are detailed as follows;
A Plan Charges
Mgmt charge .75pa to total assets
Performance fee equal to 20% of surplus over the term above (surplus of 8%pa)

B Property charges
Estimated as follows;
Acquistion expenses 2.7% of property value
Prop mgmt expenses less than .8%pa of prop value
Disposal expenses .65% of prop value

But surely we'd expect BOI private banking to have decent returns so we're not too concerned about the costs...(pay for what you get princ)
Click to expand...

Just wondering why you would "expect" BOI or any other manager to automatically have good returns? From where I am standing- branded products by the large institutions just seem to spend fortunes convincing us of the get what we pay for principal, whether they generate the returns or not?

In any event all returns are eroded by charges so I would feel that the charging structure is vital in making any investment decision.

Surely Brendan Investments will also incur acquistion, and disposal expenses? This is hardly built into the annual 0.75% management charge? Are the fees outlined for BOI just what their "finders fee" (2.7% Fee) is for acquisition, and their "performance fee" on disposal (0.65%)?
 
Pretty typical pricing I would have thought. Is there an entry commision like 3% to pay for distribution through the BOI network?

It will have max LTV of 75%, a charge on the gross assets of the €1 billion fund of 0.75% or 7.5m per year and will contain four properties I think. It is buying existing "dry" investments so there is no development potential like doing up or extending existing property, refurbishing or developing from scratch.
 
8till8 said:
MichaelDes, fill in the blanks for me, why are you not keen on liverpool.
Click to expand...

I do not rate Spain nor UK generally especially Liverpool...why not Sunderland instead (sarcastic). The UK retail economy is in for a tough Christmas. Consumer spending is being restricted by the higher interest rates kicking in with consumers. It is killing appetite to spend and sentiment. Also retail floor space in the UK is presently phenomenal compared to other EU jurisdications. Have you seen the average salaries in Liverpool to the UK average and the levels of unemployment when taking into consideration those on the sick etc. Liverpool is part of a large conurbation made up of Liverpool/Warrington/Manchester with Huddersfield/Leeds adjoining somewhat. Manchester (although nothing wonderful) is its epicentre both for airport travel, retail and general commerce etc. BOI are launching at the wrong time in the wrong locations.

Retail stats for consumer spending in Spain are not significant by EU standards. I have been there extensively and have not yet seen one of their vast malls choc-a-bloc like Liffey Valley, Blanchardstown or Dundrum at the weekends. Retail in Ireland & UK is like an extended hobby and national past time - unlike the South Mediterranean where they have more choices because of their better climate. I assume the yields would need to be in excess of 8% but whether full occupancy is achieved is another thing.

I made the comment about BI not to do with charging structure etc but it's investment choices were more attractive. Even though they do not appeal to me.
 
The profit share at a fifth above 8% pa now looks pretty standard fare across several property schemes. I'm not sure yet if we've the full picture on BOI. It looks like its taking 0.75% of the gross value for the product administration but behind it is another 0.8% pa? Not sure though. Also what are the upfront deductions for commissions?

On this evidence I agree about BI which has development mixed with investment. On current pricing the German market looks more attractive than the UK. Can't comment on Spanish commercial.
 
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