Q&A: What’s going on at New Bancroft?
I thought rents could only be hiked by 4pc a year in a rent pressure zone?
In most cases that is true. But the law makes specific exceptions for properties that have been significantly refurbished, and for properties that are new to the market.
If a property has not been let out in the two years prior to the designation of its location as a rent pressure zone, the landlord can hike the rent by more than 4pc.
The idea behind the exemption was to encourage people to put properties which weren’t already on the market up for rent.
Who is the landlord?
A company called DAD Property Fund, whose directors include two of the most well-known figures on the Irish property scene – Bill Nowlan and Frank Kenny.
Mr Nowlan owns WK Nowlan Real Estate Advisors, a property advisory company with many high-profile clients.
He previously worked in commercial property at Irish Life, and is a founder of Hibernia REIT, one of the major players in the office building sector in Dublin.
Mr Kenny was also a founder of Hibernia REIT. He has more than 35 years’ experience in the property market both here and in the United States.
Mr Kenny worked under Mr Nowlan at Irish Life and is the founder of US-focused property business Willett.
How is the State involved in this?
DAD Property Fund got money from the Ireland Strategic Investment Fund (ISIF).
The ISIF is a pot of billions, designed to be invested in commercial projects that support economic activity.
Finance Minister Paschal Donohoe recently announced plans to change the ISIF’s investment strategy to focus on a handful of specific areas – one of which is housing.
Who is responsible for monitoring ISIF investments?
The ISIF sits within the National Treasury Management Agency (NTMA) – which manages Ireland’s borrowing and financial assets. It reports to the Finance Minister. The Department of Finance said that monitoring ISIF investments is the job of the ISIF’s investment committee and the NTMA.
Representatives of the DAD Property Fund met with the ISIF yesterday to discuss the issues raised around the New Bancroft investment. DAD Proprty Fund “expressed regret for the error in relation to the timing of renewal notices”. An ISIF spokesman said if it “becomes aware of a compliance breach by an investee fund or company, it seeks immediate rectification”.