BREXIT - IRELAND-UK TRADE COULD FALL BY A FIFTH, EXPORTERS WARNED - Trade between the UK and Ireland could be reduced by as much as a fifth if Britain pulls out of the European Union, a conference heard yesterday says the Irish Independent.
Trade in goods would fall by €3 billion and services by €5 billion, the conference, hosted by the Irish Exporters Association, was told. Ana Boata, economist with credit insurance company Euler Hermes, said her organisation was expecting just a 10% probability of an British exit. But she told the event that there would be a cost to the Irish economy if it were to happen. "We really think that Brexit negotiations with Europe are not likely to be very easy, and we see increased uncertainty and delayed investments," Ms Boata said. "Companies don't like uncertainty. Overall we would imagine a slowing down of GDP growth in both countries. If it happens, we can imagine that there would be higher export and import prices, lower producer prices, higher consumer prices, lower volumes, company turnover pressures and profitability pressures. Trade between the UK and Ireland would be reduced by as much as 20%." UK Prime Minister David Cameron, inset, has promised to renegotiate Britain's relationship with the EU ahead of a vote by the end of 2017, and is tomorrow due to set out his reform plans in more detail at a summit of EU leaders in Brussels.
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MORE THAN €162m FOR FIVE RETAIL PARKS IN RECEIVERSHIP - Nutgrove Retail Park in Rathfarnham, Dublin 14 is one of five retail parks in receivership to be offered for sale on the instructions of Bank of Ireland. Agents Savills and JLL are seeking in excess of €162 million for the five properties which are currently producing a gross income of €12.2 million and will show an initial yield of about 7.2%. The entire portfolio extends to 1.1 million sq ft and is the largest to have been brought to the market since the property crash in terms of floor space, writes the Irish Times. Not surprisingly, Nutgrove will be available to buy on its own or as part of the National Portfolio because of its prime location, strong performance and the fact it has a higher value than any of the other parks. The selling agents are guiding €62 million for Nutgrove which trades strongly opposite the local shopping centre and will give a new owner an initial yield of 6.33%. It was developed in 2007 by Bymac Ltd and brings in overall rents of €4.1 million. It has a total floor area of 18,155sq m (195,000sq ft) with almost one-third of it used as office and leisure space. About 76% of the rental income comes from Homebase, Harvey Norman and Aldi and to reassure investors about the future of the park, the agents have calculated that the weighted average lease term to run is now 13.9 years. All the retail buildings are occupied. The four provincial parks to be sold in one lot with a valuation of over €100 million are Letterkenny Retail Park; Sligo Retail Park, Tullamore Retail Park and Deerpark Shopping Park in Killarney.
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RENAULT IRELAND POSTS STRONG OPERATING PROFIT RETURN - Renault group’s Irish retail arm returned to operating profit last year as revenues rose 30% to €31.6m. New figures lodged with the Companies Office show that Renault Retail Group Ireland Ltd’s revenues increased from €24.4m to €31.6m in the 12 months to the end of December, says the Irish Examiner. This coincided with the French-owned firm recording an operating profit of €8,287 following an operating loss of €371,977 in 2013. The firm recorded a pre-tax loss of €117,391, however, as a result of interest charges of €125,678. The pre-tax losses represent a 74% reduction on the pre-tax losses of €456,801 in 2013. Sales of Renault cars in Ireland last year rose 47% going from 3,321 in 2013 to 4,881. The firm’s most popular model was the Clio, which accounted for 36% of all sales while new model, the Renault Captur accounted for 22.7% followed closely by the Fluence making up of 22.19% of Renault sales. Statistics from the Society of the Irish Motor Industry show car sales of Renault models have increased by 27% or from 3,209 to 4,075 for the first five months of this year with the Clio again the bestselling model, securing 36% of total sales.
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UK PROPERTY BOOM SWELLS QUEEN'S INCOME - The Queen is set to receive a record income after Britain’s booming real estate market lifted profits at the Crown Estate, the property company owned by the sovereign. The estate, an independent commercial business created by an act of Parliament, hands all its earnings to the Treasury, which then passes on 15% to the Queen two years later. In the year to the end of March the estate generated profits of £285m, meaning the royal household is likely to receive £43m in 2016-17 - up 6.7% year on year, writes the Financial Times. Alison Nimmo, Crown Estate chief executive, said the strong results reflected Britain’s booming property market. The total value of the Crown Estate’s assets rose 16 per cent to £11.5 billion, making it one of the largest real estate companies in the country. The figures were revealed as the Palace presented its final annual accounts before a review of the Sovereign Grant - the allowance that the Queen receives from the government. The review will be undertaken by the prime minister, the chancellor and the Palace’s Keeper of the Privy Purse next April. Over the past 10 years the value of the Crown Estate portfolio has nearly doubled and the returns paid to the Treasury have grown by half as its current management takes a more active, commercial approach to the business.
