19 Nov 2019

IRES REIT/Glenveagh Properties: IRES completes acquisition of Glenveagh’s houses

IRES announced late yesterday that it had completed the purchase of 118 houses from Glenveagh – a deal that was announced last March for €38.2m.

The units are located at Taylor Hill in Balbriggan, a large, well-connected commuter town in north Dublin (78 units) and Semple Woods in Donabate, a smaller north Dublin town that is closer to the city with similarly good transport links (40 units). The units have been handed over in turnkey condition that will facilitate a speedy lease up.

It was announced in March that the units would be complete before the end of the year, so the transaction has been completed comfortably ahead of this timeframe. This is a positive indicator of Glenveagh’s operational progress as it aggressively scales up operations, while, given the very strong rental demand, IRES is confident that all 118 homes will be leased before the end of the year – slightly earlier than the initial expectation of Q120.

Johnson vs. Corbyn debate

Boris Johnson and Jeremy Corbyn take part in a head-to-head televised debate this evening at 8pm on ITV. Legal challenges by Lib Dem and SNP leaders Jo Swinson and Nicola Sturgeon, objecting to being excluded, failed and so the debate will proceed as scheduled. An event worth noting yesterday was that the PM announced that the reduction in Corporation Tax to 17p from the current rate of 19p, would not go ahead as planned next year, if the Tories are re-elected. This demonstrates both that the government feels it has other priorities and that its own proposed fiscal rules are acting as biting constraints.

Oil Demand Update

Last week the IEA released its latest monthly report. The IEA has kept its oil demand forecasts for 2019 and 2020 unchanged on the previous report at 100.3 and 101.5 mb/d respectively. It has however, increased its forecast of non-OPEC supply in 2020 marginally, by 100 kb/d, saying that amongst non-OPEC supply the ‘’US will lead the way but there will also be significant growth from Brazil, Norway and barrels from a new producer, Guyana.’’ Total non-OPEC supply growth is expected to be 2.3 mb/d in 2020 over 2019, well ahead of demand growth at only 1.2mb/d. This means the IEA estimates that OPEC need to produce only 28.9 mb/d (down from 29 mb/d in the previous report) to balance the market in 2020. 

Last month OPEC production stood at just under 30 mb/d, suggesting the market will be oversupplied by around 1 mb/day on average next year. The implication of this report is that OPEC and its partners may need to agree to cut production further when they meet next on December 5th. 

Economic Releases

EU 09.00 Current Account

CH 13.30 Manufacturing Sales

US 13.30 Housing Starts