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David Grin’s Lotus Investment Group is breathing new life into the Irish property

With 191 loans already granted, and 2,842 homes completed, there is no way but up for David Grin’s visionary Lotus Investment Group.

Since 2013, Lotus Investment Group has been a leading property investment firm in Ireland, with Chairman David Grin proudly at the helm. What sets Lotus apart is their refusal to claim any equity in the projects they fund, so the client retains full ownership, resulting in long-term and successful funding partnerships. To date, Lotus has invested €318 million in the Irish property market.

The Grin-David future is Ireland

Ireland’s economy expanded by an estimated 7.5% David Grin in 2018, spurred on by multinational companies, a strong labour market, and construction investment. House prices in Ireland are likewise forecast to continue rising the next three years until supply catches up with demand, which is expected around 2021, according to the ratings agency Standard & Poor’s. Irish house prices are anticipated to rise by 8% this year, 7% in 2020, and 6% in 2021, particularly in Dublin.

Demand has been continuously rising. In 2017, the value of residential property transactions across Ireland rose by an astonishing 19.7%. Over the first half of 2018, the value of property transactions was up 5% from the previous year, while mortgage interest rates continue to remain ridiculously low – as little as 2,39%. The Irish housing boom is being fueled by strong economic growth, immigration, and generous tax incentives from the government, creating a virtuous cycle of economic growth and house price increases.

Living City Initiative (LCI)

In an effort to address the surge in Ireland’s rental prices, which have increased strongly for the past seven consecutive years, the Irish government launched ‘Project Ireland 2040’ in 2018 – an ambitious strategic plan to promote and support sustainable property development where there is currently short supply. To address the demand for housing alongside the projected population growth, the government is incentivising developers to expand existing areas and increase the height of existing buildings, to which the state has committed €2 billion. The hope is to complete an additional 112,000 houses over the next decade.

Thus, enters the Living City Initiative (LCI), announced by the Minister of Finance in May 2015, a tax incentive scheme for areas the state has deemed to be ‘Special Regeneration Areas’ (SRAs), namely in Cork, Dublin, Kilkenny, Limerick, Galway, and Waterford. Briefly, developers and owners may claim tax relief for money spent on refurbishing or converting properties, residential or commercial, with the aim to encourage people to live in historic and underused city areas.

The LCI will offer three specific types of tax aid:

Owner-Occupier Residential Relief: Tax deductions over ten years for refurbishment or building adaptation expenses intended to be used by the owner (excludes landlords).

Rented Residential (landlord) Relief: Extended to landlords as of January 2017, accelerated capital allowance for costs to refurbish or convert residential property intended for rental.

Commercial Relief: Capital allowance for expenditure on refurbishment or conversion of commercial properties.

The capital allowance for Rented Residential and Commercial Relief is 15% of expenditure that qualifies for each of the first six years, and 10% in the seventh year.

To refurb or convert?

For the purposes of the LCI, property refurbishment is defined as work or maintenance carried out to repair or restore a property, such as repairing water supply, sewerage problems, or fixing electrical facilities.

For conversions, there are different classifications that apply to More on david grin Residential and Commercial Relief: For Owner-Occupied or Rented Residential Relief, conversion David Grin - Real Estate is from a non-residential property to a house or apartment; For Commercial Relief, the conversion is creating a property suitable for retailing goods, providing services within Ireland, or for sole/main residence. The scheme for all reliefs will end on 4 May 2020 and only work carried out during that time will qualify.

In with the old

The concept behind the LCI is quite genius: Instead of urban sprawl, the government is promoting the quicker and more affordable improvement of what already exists, thereby expediting development while preserving natural areas and green spaces. A derelict building can be turned into something fabulous at a fraction of the cost of scratch development, with a 10 to 15% tax return.

All this progress within the Irish property market is why Lotus Investment Group is a much-needed ally. Not from the traditional banking model and financed solely from private equity sources, Lotus is different from all its competitors, being faster than any david grin other at making funds available when needed, with a turnaround time as short as three weeks. The Irish government’s new mixed-use development projects and push to expand on four to six-story residential buildings means the innovative and fast funding provided by Lotus will be in high demand, and their development focus is perfectly aligned with the government’s strategic plans. Projects of this nature also bring with them follow-on benefits, such as increased commerce, property value, even tourism. Investing in area improvement uplifts the whole region, making the motives behind the LCI insightful and forward-thinking. Attractive areas likewise attract further investment. With all this market boom, the services and quick turnarounds offered by Lotus group will be needed and welcomed.

Things have been very much on the up and up for Ireland. Between property and economic growth, and the government’s innovative strategy plans, the future for the country looks set.

Article Source:

https://www.thehouseshop.com/property-blog/david-grins-lotus-investment-group-is-breathing-new-life-into-the-irish-property/20127/

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Ireland Is Hiring! David Grin Explores Expected Labour Shortages in the Construction Sector

Soaring employment levels have led to a potential labour and skills shortage in the country just a decade after the recession devastated the Irish economy.

Employment levels in Ireland hit a 20-year high indicating a potential labour and skills shortage in several sectors. Since emerging from the financial crisis in 2013, Grin-David Article 385,000 jobs have been created in the Irish economy. The current unemployment rate in the country is 5.6%, with the Central Bank forecasting a rate of 4.9% for 2019, hovering close to what economists consider full employment levels. The booming economy is posing challenges for employers looking to fill open positions and providing ample opportunities for job seekers. The construction industry is predicted to be severely affected by the labour shortage, in large part due to the growing demand for housing across the country.

The labour shortage threatens the gains the market has achieved in the wake of the recession. Chairman of private equity firm Lotus Investment Group, David Grin, pointed out that, “The labour shortage within the construction field has driven up the cost of labour, leading to a potential dramatic increase in the total cost of projects. Without an adequate workforce, completion times https://www.thehouseshop.com/property-blog/david-grins-lotus-investment-group-is-breathing-new-life-into-the-irish-property/20127/ must also be pushed back. It creates uncertainty for investors who are optimistic about the recovery and potential of the Irish housing market and it threatens long-term stability in the industry.”

Rebuilding Ireland

Recent reports indicate that Ireland needs approximately 112,000 additional workers by 2020 to deliver on the ambitious Rebuilding Ireland output targets. The current workforce is ageing with fewer young replacements waiting in the wings, a trend being experienced globally. This problem, coupled with dramatically declining apprenticeship rates, has left many sectors within the construction industry struggling to attract talent.

According to a recent survey conducted by the Dublin Institute of Technology for the Construction Industry Federation, in 2006, 300 people registered for apprenticeships as plasterers, 161 as painter and decorators, 679 as bricklayers and 43 as floor and wall tilers. Those same figures for 2017 were 30 registering as plasterers, 45 as painters/decorators, 65 as bricklayers, with zero people registering as apprentice tilers. Those statistics render a bleak prognosis for the industry.

Recruiting Young Workers

Before young workers are willing to consider pursuing a job in the industry, they need to perceive the construction trades as a viable career option. During the recession, there was an abrupt halt to construction activity that led many tradesmen to seek employment outside of Ireland, contributing to the acute skills shortage being experienced now. With low job prospects and uncertain long-term career viability, it became difficult to recruit new workers to the construction sector. Ireland is now experiencing a dramatic turnaround in the economy and the demand for home-building, exposing weaknesses such as the skills gap within the industry.

The government has joined the recruitment campaign to attract young workers to consider pursuing apprenticeship programs in the construction trades. The Minister for Education and Skills launched the Apprenticeship Council in 2014 tasked with expanding apprenticeship programs and recruiting prospective trainees. Solas, the state training agency, supports an apprenticeship initiative that operates in collaboration with industry leaders to develop talent, retrain and help unemployed people, and reduce the skills gap across a range of trade areas.

Apprenticeship initiatives are important in promoting the construction trades and recruiting workers, but the process should begin much earlier. It is crucial to develop an interest in the field by incorporating STEM (Science, Technology, Engineering, and Mathematics) curriculum from the primary stage of learning. This interdisciplinary approach creates a cohesive learning experience for young students that has real-world applications. Introducing these skills at a young age will help motivate and inspire students to excel and pursue high-demand careers within these disciplines, Grin-David including the construction sector.

Diversity as a Strength

The construction industry is often criticized for its lack of diversity. By promoting inclusivity, the industry becomes much more attractive to employees of all genders and ethnicities. Diversity has been proven to improve decision making and it exposes a business to a multitude of different perspectives. It is imperative for employers not to exclude prospective jobseekers based on their gender or ethnicity. In 2017, the Construction Industry Federation launched a #BuildingEquality initiative to promote diversity in the construction industry. The campaign highlighted the achievements of women within the industry in the hopes that their stories will inspire future generations of women to pursue careers in construction.

The industry has traditionally relied on a linear career progression from within the industry, one in which you work your way up the ranks, but that may David Grin no longer suit the marketplace. Recruitment from other industries is a practical option for many companies. With the advent of digital construction, there are several technical skills required that potentially overlap industries. There is a particularly high demand for structural engineers, architects, site engineers, and quantity surveyors, careers that require technical and analytical skills.

Employees with experience working in other industries can apply innovative techniques learned in their previous positions to the demands and challenges of the construction landscape. Emerging technologies within the field of construction may require general technical and analysis skills rather than specialized qualifications currently required for jobs within the field, making them suitable to candidates with varied education and experience.

An International Recruitment Effort

Companies and recruitment agencies have begun to look outside of Europe to find suitable workers to join the Irish home-building workforce. Traditional markets within the European Economic Area like Poland, the Czech Republic and Slovakia that were once major suppliers of workers to the Irish market are now themselves experiencing booming construction activity making it difficult to attract workers to Ireland. Currently recruitment efforts are underway in South Africa, Malaysia, the Philippines and New Zealand in an attempt to attract foreign workers to come to Ireland for construction jobs.

Another global recruitment drive has a different target population: Irish workers who emigrated during the recession. Many workers who left during the economic decline may not realize the building boom that is being experienced at home. One recruitment company, FRS Recruitment has created the “Ireland is Hiring” initiative to entice Irish workers to come back home for work. As part of the initiative, the company has agreed to pay for the flight home of any Irish person successfully placed in a job with one of their clients.

Changing Expectations

When it comes to scouting talent, companies and recruiters have had to adapt their approach and expectations to be able to fill the many open positions. Companies are affording candidates more flexibility with temporary contracts, the use of agency workers, and offers of part-time or remote work. There is an increasing amount of recruitment within the industry with companies offering attractive bonuses and incentives trying to lure workers from other companies. However, these tactics have led to a higher turnover rate with workers able to choose between jobs more easily.

Economic conditions and the labour market have changed markedly in a very short time. It was not that long ago that Ireland was seeking a bailout during the recession. Now with a booming marketplace, the ability to meet the growing demand has placed a strain on the construction industry in ways it was not anticipating. David Grin https://www.talk-business.co.uk/2019/04/11/david-grin-reflects-on-dublins-impending-rental-crisis/ offered a final thought on the challenges facing the Irish property market, “Labour shortages hinder a business’s ability to deliver project goals, maintain productivity, and achieve industry objectives. There likely will not be a quick solution to this problem and companies will need to think outside the box when it comes to recruiting new talent.”

Article Source:

https://homebusinessmag.com/businesses/business-spotlights/ireland-hiring-david-grin-labour-shortages-construction-sector/

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Growth in Irish Residential Property Market Presents Opportunities for Lotus Investment Group - Chairman David Grin

The increasing demand for housing and continued growth trends in the residential property market in Ireland have created a unique opportunity for alternative property funding firm Lotus Investment Find out more Group, led by Chairman David Grin.

The Marketing Institute of Ireland and UCD Michael Smurfit Graduate Business School recently released the final quarterly report for 2018 of the Consumer Market Monitor (CMM). The report offers insights into trends in consumer behavior in Ireland, highlighting emerging opportunities for planning and investment. It has a positive outlook for the next two years, with favorable economic conditions expected to remain strong, alongside anticipated population growth and rising employment rates. Brexit remains an issue for consumer confidence, but government development planning is intended to assuage economic fears.

Growth Trends in the Irish Property Market The Marketing Institute report reveals steady growth in Ireland’s residential property market. investment The market has continued to recover from its lowest point in 2011, when just 25,700 properties were sold, and 10,500 mortgages were granted. In 2018, 52,000 properties were sold, a 5% increase on the previous year, and 30,629 mortgages were granted, marking a 9% increase on 2017 loans. This growth trend is expected to continue through 2019 and 2020. However, it remains a far cry from the boom Grin-David year of 2005 when 105,000 homes were sold, and 85,000 mortgages were approved.

Employment is continuing to rise, rivalling pre-recession levels, however, even with steadily increasing mortgage lending rates, Ireland has yet to achieve the property boom experienced in 2005. While analysts must be cautious when comparing pre- and post-recession mortgage conditions, the disparity in mortgage financing reveals an underutilization of property funding by consumers and a potential niche market for mortgage lenders willing to transcend the traditional financing model.

With mortgage lending continuing to grow, and mortgage conditions continuing to adapt to the demands of the market, an excellent opportunity has emerged for flexible mortgage lenders like Lotus Investment Group. Lotus specializes in alternative property investments based on durable partnerships with developers. The advantage over traditional lenders is the ability to provide fast and flexible funding solutions. To date, Lotus Investment Group has funded over 2,500 new homes and contributed in excess of €300 million to the Irish property market.

Disparity Between Housing Supply and Demand Forecasts suggest that sales will increase by a further 5% this year, a modest rate of growth that is at odds with the high level of demand driving up national rent and purchase prices. The continuing trend of disparity between strong demand and weak supply is stimulating construction throughout the country. A growing population, changing social demographics in an aging population, smaller family size, and continued urbanization has led to a shift in demand for urban residences. In accordance with these changes, first time home buyers are the largest group of mortgage recipients, accounting for 60% of the mortgages granted, and the emerging private rental sector is set to grow at an unprecedented rate.

In a property market where demand outstrips supply, Lotus Investment Group provides a fundamental role in driving new construction. After entering the Irish property market More on david grin in 2013, Lotus has quickly become the go-to firm for property investors and developers. Their client specific funding model allows Lotus to quickly respond to funding demands, ensuring development projects proceed without delay.

Urban Growth Forecast In 2018, the Irish government published Project Ireland 2040, a strategic development plan aimed at promoting sustainable growth in the anticipation of dramatic population increase. To meet the needs of population growth and to remedy the current shortage in housing, Project Ireland 2040 prioritises compact urban growth over unplanned urban sprawl. The government is encouraging developers to build up existing areas, and to increase the height of commercial and residential buildings. To achieve this urban expansion, the state will commit to a €2 billion Urban Regeneration and Development Fund encouraging a collaborative effort between the government and the private sector. The goal is to reach 112,000 households over the next decade, with 30% of these homes built in urban areas.

According to Chairman of Lotus Investment Group David Grin, “Continuing growth trends in residential property planning and construction provides an exciting opportunity for investors and developers. The market will be forced to evolve to meet the predicted shifts in demand. We believe that our innovative, flexible investment model provides Lotus Investment Group with a distinct advantage in the dynamic Irish property market.”

With the current and planned new high-rise, mixed-use development projects, and an emphasis on four to six story residential construction, the innovative funding solutions provided by david grin Lotus Investment Group will continue to be in high demand. The firm’s focus on providing financing to new residential development of small to medium property assets is directly in line with the strategic development plan published by the Irish government.

Technology in the Real Estate Sector Technology in the commercial real estate sector is also transforming the way consumers interact with the industry. The revolutionary ‘proptech’ sector, the collective term used to describe technology designed for planning, construction, and property, offers realtors, investors, developers and home buyers innovative solutions and drives growth at an unprecedented rate. The new Irish online bidding platform, Beagel.io, surpassed €100 million in online bids for Irish properties in recent months. It is yet to be seen if the industry will be able to adapt quickly to keep pace with the new technologies available.

Innovative technology applied to mortgage lending and investments has the potential to accelerate the process of planning, development, and construction. From its inception, Lotus Investment Group has embraced this fast-paced approach to lending as a way of conducting business. With the flexibility afforded by the alternative financing model of Lotus Investment Group, clients have an advantage over the barriers experienced in the traditional bank funding model. Continuing to promote innovate funding and investment strategies raises the standard of service that Lotus Investment Group is able to provide for its clients.

Article Source:

https://bdaily.co.uk/articles/2019/02/28/growth-in-irish-residential-property-market-presents-opportunities-for-lotus-investment-group-chairman-david-grin

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The Independent Reports a Funding Initiative by US Investor David Grin to Inject €150m into Build-Ready Properties in Dublin

The Irish Independent recently reported that US hedge fund founder David Grin is set to earmark €150 million for investment in Dublin housing sites. The financing initiative is part of Mr. Grin's newest Irish venture, Cara Infinity Investments. This investment drive is currently in the early stages of seeking interested institutional investors with the goal of funding several shovel-ready sites in Dublin. Shovel-ready refers to sites that have already secured required legal and environmental clearances, have built infrastructure in place, and all initial planning has been completed so that a site is ready for the immediate start of construction. Mr. Grin's funding campaign comes at an opportune time for investors, as the Independent reported in a separate publication that construction activity in the country has reached a seven-month high in February 2019.

Investment Seeks to Alleviate Short-Term Supply Deficit

The funding campaign will target development sites that have already secured full planning permission of up to 2,000 units throughout the Greater Dublin Area. The investment firm will pursue projects that are scheduled to be completed within 12-24 months, providing a quick turnaround for investors and a path towards short term relief in the current housing crisis. The Independent reports that Mr. Grin anticipates that finished units can be sold for a minimum of €400,000 each, which is just above the €370,472 average home price in Dublin as detailed in the latest Daft.ie 2018 quarterly house price report. This average price is up €150,000 from 2012, when the lowest home prices were recorded during the recession.

The country continues to experience a housing shortage, which is expected to be exacerbated by anticipated population growth in the next decade. This disparity between growing demand and lagging supply has contributed to rising home prices in the capital and other urban areas. The housing shortage has provided numerous financial investment opportunities in the Irish property market, spurring a flurry of foreign direct investment (FDI). This infusion of capital has been welcomed by the government and has provided a much-needed boost to Grin-David Article the domestic industry. Investment sources have primarily come from the United States, Asia and the Middle East. Foreign investment is likely to grow with continued strong consumer confidence in the market and with Ireland representing a viable investment alternative to a post-Brexit UK.

Mr. Grin told the Independent, "The new homes market in Ireland continues to perform strongly, and there remains a significant unsatisfied demand for housing. There is excellent potential here to invest in sites with full planning permission and secured services, that have the capacity to be built david grin out in the short term and that can go some way to satisfying the current under-supply."

Irish Property Market Experiencing Growing Pains

With a favorable economic environment, the Irish market has experienced rapid growth since recovering from the housing recession. The initial response from developers, investors and home-builders to the expanding market has been somewhat delayed due to the slower pace of homebuilding accomplished during the recession, however, that trend appears to be rebounding with a total of 18,000 new homes built in 2018, up from 15,000 recorded during the previous year.

Market forecasts show the anticipated housing supply to continue to increase in the next couple of years with more new homes expecting to be built. At the moment, there are several projects in the planning, development and construction stage in the Greater Dublin Area that will contribute to this growth in supply. Demographic shifts and changes in buying trends will also be important factors for stakeholders to consider in the future of the residential and commercial property market in Ireland.

Current public planning and development policy has laid the groundwork for a sustainable growth strategy to home building throughout the urban landscape of Ireland. The Project Ireland 2040 government initiative, the National Planning Framework, and the National Development Plan have all advocated for compact urban growth with requirements like increased minimum building heights to six stories and eliminating maximum heights for new high-rise developments. Industry innovation Grin-David and a willingness to go beyond the traditional funding models and construction methods will be necessary in order to accommodate the changing demands of the market.

Investment Capital in High Demand

For David Grin, Cara Infinity is not the first investment venture he has established in Ireland. Grin is thehouseshop.com/property-blog/david-grins-lotus-investment-group-is-breathing-new-life-into-the-irish-property/20127/ also the chairman of private equity firm Lotus Investment Group, which boasts an impressive catalogue of investments with over 190 loans granted, over €318 million funds allocated and over 2,800 homes built. Lotus Investments entered the Irish market in 2013 and has since become an attractive lender for developers seeking alternative funding options. They specialize in small and medium property assets with funding goals from €500,000 to €10 million. Lotus funded projects can be found throughout Dublin, Leinster, Munster and Connaught.Lotus Investment Group has used its record of successful investments and growing reputation to become an industry leader in property funding.

It is important to note that the Cara Infinity Investment initiative is a separate project and is not related to the work that is done at Lotus Investment Group. The new investment effort is concentrated on raising funds with the goal of investing in build ready sites, while Lotus considers each investment application on a one by one basis and provides working capital loans for developers, acquisition loans for property buyers and loans for real estate portfolio purchasers from banks and receivers.

The €150 million investment proposed by David Grin's Cara Infinity Investments and those like it will be an essential infusion of capital for developers and home-builders in the Irish property market going forward. Continued strong demand for funding in all aspects of the commercial and residential property sector will likely provide ample investment opportunities David Grin across the market for the foreseeable future.

Article Source:

https://www.equities.com/news/the-independent-reports-a-funding-initiative-by-us-investor-david-grin-to-inject-150m-into-build-ready-properties-in-dublin