I downloaded this report and had a look through it. It contains for the most part useless information. This extract states the blindingly obvious fact that there is years of supply of overpriced shitty 1 and 2 bedroom apartments in south Dublin.
Beacon South Quarter
Mothballing of developments and land banks
During our review, we have seen significant evidence of borrowers reacting to the downturn in the residential market by effectively ‘mothballing’ development sites and land banks. These sites are not expected to be developed/completed until there is a return in activity to the market. This is a short to medium term solution for many developers. However, the ability to place facilities on hold may be restricted. It will be difficult for the Bank to permit interest roll up on facilities where LTV is high, interest cannot be funded and further security is unavailable.
This article is from the Irish Times June 2008
I received an e-mail last week about the "mothballing of an entire unfinished apartment block" at Beacon South Quarter in Sandyford.It read: "The mothballing involves wrapping, yes wrapping the unfinished six-storey high concrete structure in colourful sheeting with images of balconies and happy residents. I suggest that you need look no further for an icon as to the oversupply of apartments in south Dublin.From the Indo September 2008
But some developments, like the Beacon South Quarter in Dublin's southside, have managed to put a gloss on an apartment project which has slowed dramatically. The facade of the apartment block has been shrouded in a €50,000 drape with images of elegant apartment dwellers gazing out over the Sandyford area. There was no work being done on the apartment block last week though the fitting out of a new unit for Bank of Ireland was continuing on the ground floor, which is earmarked for retail units. Landmark Developments declined to comment on the current status of the project, but in June a spokesman said the massive drapes were applied to the unfinished building's facade to make it more aesthetically pleasing for the 1,600 residents currently living in the Beacon's completed blocks. He also said that the curtain wall glazing for the facade wasn't due for delivery until January 2009 and he denied the project was mothballed.
Well it's now nearly march and the drapes are still up
In our Phase II report we commented that there were large exposures to a number of developers with residential land banks and development sites which are geographically close in South Dublin and Wicklow. Our work on Phase III has highlighted the fact that this concentration of exposure also applies in the next 50 largest land and development loans.
Taking both phases of our work into account there is currently a large over-hang of unsold higher density residential units in these areas accounting for a number of years supply and on top of this there are sites without planning permission in relation to which developers are hoping applications will be processed when local authority infrastructure and planning issues are resolved. Successful disposal of the current and ‘pipeline’ stock will take many years and
appear unlikely to occur at current unit price levels. There are likely to be significant losses for individual developersand in turn the Bank as a result.
No Shit Sherlock