Irish Investment on the Global Stage Presented by Ian Gleeson Lambda Alpha Spring Conference Dublin  31 May 2007
<ul><li>Ireland……..Some Basic Facts </li></ul><ul><li>Overview of the Irish Investor </li></ul><ul><li>The National Pensio...
<ul><li>“ We have really everything in common with America nowadays except, of course, language ” </li></ul><ul><li>Oscar ...
<ul><li>Demographics </li></ul><ul><li>The Economy </li></ul><ul><li>How we invest our money </li></ul>Ireland……Some Basic...
<ul><li>Population of 4.2m, up from 3.6m in 1996 </li></ul><ul><li>Population growth of 2.0% per annum between 2002 - 2006...
<ul><li>GDP Growth of 7.1% per annum in 10 year period to tend 2006 </li></ul><ul><li>GDP forecast to grow by 4.0% - 5.0% ...
Ireland……Some Basic Facts How we invest our money
<ul><li>Who are they? </li></ul><ul><li>What do they look like? </li></ul><ul><li>Why have they gone overseas? </li></ul><...
<ul><li>Private Client Managers </li></ul><ul><ul><li>Equity Syndicators such as Quinlan Private, Warren Private, Davy’s <...
<ul><li>Direct investment is favoured although some indirect starting </li></ul><ul><li>Trophy properties </li></ul><ul><l...
<ul><li>Why are they investing overseas? </li></ul><ul><li>Size of Domestic Market </li></ul><ul><li>Domestic returns have...
<ul><li>Market environment </li></ul><ul><li>Interest rates </li></ul><ul><li>Performance of Domestic Economy </li></ul><u...
<ul><li>Background </li></ul><ul><li>Property Investment Strategy </li></ul><ul><li>Property Investments </li></ul>The Nat...
<ul><li>National Pensions Reserve Fund established in 2001 with the objective </li></ul><ul><li>“ to meet as much as possi...
<ul><li>Targeting an 8.0% allocation to property by end 2009, subject to market conditions </li></ul><ul><li>Investing ind...
US Investments (8)  €  420.8m Broadway Partners €  31.9m Berkshire Multifamily Value Fund  €  31.2m Tishman Speyer VI US  ...
Bois Colombes, Paris – FDV II EBay HQ, Berlin – FERI II Kinta City Mall, Malaysia – ARM II Royal Mail Unit, Heathrow – AIP...
<ul><li>Ireland has experienced a golden era of wealth creation </li></ul><ul><li>A significant portion of that wealth has...
<ul><li>Having graduated from Trinity College Dublin in 1992 Ian started his career in property as a researcher for Cheste...
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04 Ian Gleeson.ppt

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04 Ian Gleeson.ppt

  1. 1. Irish Investment on the Global Stage Presented by Ian Gleeson Lambda Alpha Spring Conference Dublin 31 May 2007
  2. 2. <ul><li>Ireland……..Some Basic Facts </li></ul><ul><li>Overview of the Irish Investor </li></ul><ul><li>The National Pensions Reserve Fund </li></ul>Agenda
  3. 3. <ul><li>“ We have really everything in common with America nowadays except, of course, language ” </li></ul><ul><li>Oscar Wilde, The Canterville Ghost, 1882 </li></ul>Before we start……..a quote from a local
  4. 4. <ul><li>Demographics </li></ul><ul><li>The Economy </li></ul><ul><li>How we invest our money </li></ul>Ireland……Some Basic Facts
  5. 5. <ul><li>Population of 4.2m, up from 3.6m in 1996 </li></ul><ul><li>Population growth of 2.0% per annum between 2002 - 2006 </li></ul><ul><li>Gross inward migration in 2006 of 86,900 </li></ul><ul><li>Median Age of the population is 34 years – the lowest in EU-27 </li></ul><ul><li>Most favourable old age dependency ratio in the EU-27 </li></ul>Ireland……Some Basic Facts Demographics
  6. 6. <ul><li>GDP Growth of 7.1% per annum in 10 year period to tend 2006 </li></ul><ul><li>GDP forecast to grow by 4.0% - 5.0% per annum in three years to end 2009 </li></ul><ul><li>GDP of €176.0bn with average GDP per head of €33,000 (EU Average = €24,000) </li></ul><ul><li>Government Debt to GDP ratio of 25.1% </li></ul><ul><li>National Development Plan targeting total spend investment of €184.0bn between now and end 2013 </li></ul>Ireland……Some Basic Facts The Economy Real GDP Growth (% per annum)
  7. 7. Ireland……Some Basic Facts How we invest our money
  8. 8. <ul><li>Who are they? </li></ul><ul><li>What do they look like? </li></ul><ul><li>Why have they gone overseas? </li></ul><ul><li>Where have they gone? </li></ul>Overview of the Irish Investor
  9. 9. <ul><li>Private Client Managers </li></ul><ul><ul><li>Equity Syndicators such as Quinlan Private, Warren Private, Davy’s </li></ul></ul><ul><ul><li>Private Banks such as Anglo Irish, AIB, Bank of Ireland </li></ul></ul><ul><li>Institutions </li></ul><ul><ul><li>Life Companies, Pensions Funds, Family Offices </li></ul></ul><ul><li>Builder/Developers </li></ul><ul><ul><li>Irish house builders/construction companies looking to diversify </li></ul></ul><ul><ul><li>Include groups such as Cosgrave, Bernard McNamara, Mennolly Homes </li></ul></ul><ul><li>Retail Investors </li></ul><ul><ul><li>Joe Public investing through pooled products offered by high street banks and life companies </li></ul></ul>Overview of the Irish Investor Who are they?
  10. 10. <ul><li>Direct investment is favoured although some indirect starting </li></ul><ul><li>Trophy properties </li></ul><ul><li>Highly geared </li></ul><ul><li>Long term investors – not benchmark constrained </li></ul>Overview of the Irish Investor What do they look like? 237 Park Avenue, New York Co-investment by Davy’s on behalf of their private clietns Claridges Hotel, London Acquired by Quinlan Private Woolgate Exchange, London Acquired by D2 Private The Chicago Spire, Chicago Development project of Shelbourne Developments                                                                           
  11. 11. <ul><li>Why are they investing overseas? </li></ul><ul><li>Size of Domestic Market </li></ul><ul><li>Domestic returns have peaked? </li></ul><ul><li>Opportunity Driven </li></ul><ul><li>Need to diversify </li></ul><ul><li>Expensive to acquire </li></ul><ul><li>Cultural – Irish tend to travel and are adventurous! </li></ul><ul><li>Where the capital is going </li></ul><ul><li>Initially UK and Eastern Europe </li></ul><ul><li>… then continental Europe and USA…. </li></ul><ul><li>And now……Asia </li></ul>Overview of the Irish Investor Why have they gone overseas and where have they gone? Total Returns of Irish Commercial Property Market (% per annum)
  12. 12. <ul><li>Market environment </li></ul><ul><li>Interest rates </li></ul><ul><li>Performance of Domestic Economy </li></ul><ul><li>Need to diversify </li></ul>Challenges ahead UK Market: All Property Yield (%) v. West End Rental Growth
  13. 13. <ul><li>Background </li></ul><ul><li>Property Investment Strategy </li></ul><ul><li>Property Investments </li></ul>The National Pensions Reserve Fund
  14. 14. <ul><li>National Pensions Reserve Fund established in 2001 with the objective </li></ul><ul><li>“ to meet as much as possible of the costs of social welfare and public service pensions from 2025 onwards so that the Exchequer burden arising from our additional pension commitments over a very long time can be smooth ened ” </li></ul><ul><li>The Fund is a reserve Fund and is one of the first of its kind in the world </li></ul><ul><li>Under legislation the Fund receives a contribution of 1.0% of GNP per annum from the exchequer currently c. €400.0m per quarter with no cash to be drawn before 2025 </li></ul><ul><li>Current value of the NPRF is c. €20.0bn but is expected to be c. €30.0bn by end 2009 </li></ul><ul><li>Initial asset allocation focused exclusively on equity and fixed income but strategy widened in 2004 to include alternative investments </li></ul><ul><li>Targeting an allocation of 8.0% to property – expected to have a portfolio value of c. €2.5bn by end 2009 </li></ul>The National Pensions Reserve Fund Background
  15. 15. <ul><li>Targeting an 8.0% allocation to property by end 2009, subject to market conditions </li></ul><ul><li>Investing indirectly with focus on private vehicles </li></ul><ul><li>Will invest in all global regions and markets with investment grade sovereign credit rating </li></ul><ul><li>Bias to value add and opportunistic style strategies </li></ul>Strategic Targets Property Investment Strategy The National Pensions Reserve Fund 15.0% 50.0% 35.0% Europe North America Asia 30.0% 50.0% 20.0% Core Value Add Opportunistic
  16. 16. US Investments (8) € 420.8m Broadway Partners € 31.9m Berkshire Multifamily Value Fund € 31.2m Tishman Speyer VI US € 39.8m Strategic Partners US IV € 46.0m + Lehman Brothers Real Estate Partners € 19.8m + Pramerica Real Estate Companies Account III € 28.6m Global Investments (3) Morgan Stanley Real Estate Fund V € 39.3m - Europe 40%, Asia, 60% Lehman Brothers Real Estate Partners II € 39.6m Pramerica Real Estate Companies Account III € 38.2m - North America 50%, Europe 30%, Asia 20% - North America 75%, Europe 25% Asia Investments (4) € 146.2m Asia Retail Mall II Ltd € 19.5m + Morgan Stanley Real Estate Fund V € 23.6m + Lehman Brothers Real Estate Partners II € 7.9m CT Large Loan 2006 € 30.7m MSREF V US € 76.4m Broadway Partners II € 57.7m Composition Capital Asia Fund € 19.0m Forum Asia Realty Income II € 38.5m Macquarie Japan Core Plus € 37.7m Madison Marquette Retail Enhancement € 58.7m The National Pensions Reserve Fund European Investments (8) € 401.4m Strategic Partners UK II € 36.9m French Dev. Venture II € 30.0m Airport Industrial Property Unit Trust € 43.4m German Retail Box Fund € 35.0m Morgan Stanley Eurozone Office Fund € 50.0m Forum European Realty Income II € 50.0m + Morgan Stanley Real Estate Fund V € 15.7m + Lehman Brothers Real Estate Partners II € 11.9m + Pramerica Real Estate Companies Account III € 9.5m The Mall € 44.0m Tishman Speyer VI Europe € 75.0m
  17. 17. Bois Colombes, Paris – FDV II EBay HQ, Berlin – FERI II Kinta City Mall, Malaysia – ARM II Royal Mail Unit, Heathrow – AIPUT IBM HQ, Madrid – MSEOF Metro Retail Portfolio, Germany – GRBF AON Center, L.A. – Broadway I 522 5 th Ave, NY – Broadway II Sawgrass Mill, Florida – CTLL 2006 MetLIfe Building, NY – TSREV VI Shanghai Square, Shanghai – MSREF V The National Pensions Reserve Fund
  18. 18. <ul><li>Ireland has experienced a golden era of wealth creation </li></ul><ul><li>A significant portion of that wealth has been invested in property </li></ul><ul><li>There continues to be a huge wave of capital being invested in property by Irish investors </li></ul><ul><li>Irish investors are continuing to add to their property portfolios albeit looking to diversify away from their core markets </li></ul>Irish Investment on the Global Stage Takeaways
  19. 19. <ul><li>Having graduated from Trinity College Dublin in 1992 Ian started his career in property as a researcher for Chesterton. In 1996 Ian joined ESN Pension Management Group as a property investment analyst. During 1996 ESN was acquired by Foreign & Colonial. Ian spent eight years with F&C and occupied a number of positions within their property team including Director responsible for indirect investment and strategy. Ian left F&C in 2004 to start the property investment programme for the National Pensions Reserve Fund (Ireland). During Ian’s tenure with the NPRF he committed c. €1.2bn to almost 30 unlisted property vehicles across the globe. In May 2007 Ian took up the new position of Head of International Multi Manager at Morley Fund Management. </li></ul><ul><li>Ian sits on the Management Board of INREV, the European Association for Investors in Non-Listed Real Estate Vehicles. He has also acted as Chairman of the Investor Platform of INREV. </li></ul><ul><li>Ian. Gleeson @ morleyfm .com </li></ul>Ian Gleeson Biographical Details

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