COMMERCIAL PROPERTY SECTOR EXPECTED TO SEE MORE DEALS THIS YEAR - The commercial property sector was seriously hit by the property crash. In 2009, there were just 13 commercial property transactions worth €92m. But last year that rose to 29 investments worth €241m.
The director of research at property company CB Richard Ellis, Marie Hunt, says that a notable improvement in deals is expected in many parts of the Irish commercial sector this year as NAMA, banks and borrowers start to bring properties to the market once again. She says that NAMA will not flood the market with properties but will release them on a phased basis. Most of the buyers on the commercial market are expected to be overseas, with special interest from buyers in Germany, the US and UK. On rents, Ms Hunt says that they will continue to fall generally. While they may remain steady in prime buildings in key locations, rents in secondary markets will remain under pressure.
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EURO ZONE TALKS ON RESCUE FUND CONTINUE - Euro zone finance ministers discussed having more money in their rescue fund and cheaper emergency loans as part of a package of measures to end the sovereign debt crisis, but they made no firm decisions. The chairman of euro zone finance ministers, Jean-Claude Juncker, said the ministers discussed many possible options under the package, but favoured none at this stage. At a press conference following the talks, Jean-Claude Juncker was asked how realistic it is to believe that there will be a reduction in the interest rate charged on Irish loans, but he did not give much away.
Economic researcher Lorcan Roche Kelly says that he believes there will not be much movement on interest rates for the rescue fund. He says the Irish rates are comparable to the rates Greece must pay for its bail-out funds and if the Irish rates were reduced it would be seen as Ireland getting favourable treatment. He says that Germany is reluctant to make any reductions in rates as it wants the facility to remain as a last resort. Economic Affairs commissioner Olli Rehn promised new tougher stress tests on Europe's banks will be revealed within months. Mr Roche Kelly warns that if the stress tests are too severe, half of Europe's banks would fail them.
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MORNING BRIEFS - On the currency markets the euro is trading at $1.3339 cents and 83.59 pence sterling.
