Sir, – The decision taken by Allianz to pause investments in the Irish residential real estate market represents an embarrassing state of affairs.
On the one hand we lament the seemingly endless housing crisis, but on the other we chastise the very sources of capital that could (and would, if not chased out of the country) make a fundamental impact on that crisis.
The Irish media and political classes have wrongly tarred all funds with the same brush, they are all vulture or cuckoo funds, regardless of their investment strategy or opportunities they offer to a small country like Ireland. This is wrong and needs to be corrected before more funds like Allianz, who are engaged in the “right” sort of investment activities, feel compelled to move their money elsewhere. This applies to funds that offer more than just real estate investment.
In an era of low interest rates, funds are hoovering up cash from institutional investors like never before and that cash needs a home. Ireland has a real housing problem, which is largely derived from under-investment.
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We should be rolling out the red carpet for this sort of money to come into the country. The UK has done this successfully over the last few decades. We should be doing it too.
– Yours, etc,
PETER MALLON,
London.