Irish Commercial Property fund

[kevcorcoran]

I have invested in an Commercial property fund in Ireland just over two years ago and the returns made at the minute are more than satifactory. The investment is for over 100K and geared 3:1. After the recent falls in commercial property in the UK I was thinking about discontinuing the invested as a similar fall in Ireland, which seems likely, would remove all of the previous returns. It will take up to 6mths for the withdrwal to go through and after the first 15 days it cannot be cancelled. Do you think it is wise to go ahead with this or just wait until the five year period has elapsed?

 

[czechmate]

I have invested in an Commercial property fund in Ireland just over two years ago and the returns made at the minute are more than satifactory. The investment is for over 100K and geared 3:1. After the recent falls in commercial property in the UK I was thinking about discontinuing the invested as a similar fall in Ireland, which seems likely, would remove all of the previous returns. It will take up to 6mths for the withdrwal to go through and after the first 15 days it cannot be cancelled. Do you think it is wise to go ahead with this or just wait until the five year period has elapsed?

What is the relevance of the 5 years?

Only problem with deciding to cash in now is that you have no idea what value you are going to get in 6 months time.

 

[ClubMan]

Is this investment part of a generally diversified portfolio? Why did you get into it in the first place and with what sort of timeframe in mind? It's difficult to make informed comment without a lot more information about your overall circumstances. However as implied by the previous post past performance and timing the markets are probably not great ways to manage your investments.

 

[kevcorcoran]

Five years is the time frame that you can withdraw without any exit penaliies. At the moment it has just entered year 3 so penalties are 3% of total investment. This is bearable given the returns to date. Entry into this fund was on the advice of an investment advisor - who at the minute wont commit to an answer as to whether it is better to stay in or leave. The main problem is that the fund reserves the right to not pay out until 6mth after the request date and I'm unsure what way the commerical property market in Ireland is likely to go in the meantime. Any suggestions?

 

[Duke of Marmalade]

Only problem with deciding to cash in now is that you have no idea what value you are going to get in 6 months time.

Kev, czechmate has hit the nail on the head here. I know of at least one company that has suspended dealings for six months but has also frozen prices - in other words the current prices are meaningless. Other companies have sharply written down their prices but remain open.

Care to name your company?