CBRE Dublin Reaction To Budget 2013
Dublin, 5th December 2012 – Commercial property consultants CBRE this afternoon reacted to Budget 2013. According to CBRE, the most significant measure announced in Budget 2013 for the commercial property sector is the introduction of enabling measures for Real Estate Investment Trusts (REIT’s). According to Sean O’Brien, Executive Director and Head of Investment at CBRE, Ireland “This initiative will be important in helping to raise much needed capital for the property investment market. REIT’s have played a major role in attracting investment into special purpose, tax efficient vehicles which acquire and manage real estate assets, especially in the UK and Germany. These can be tailored to specialise in particular sectors of the market such as offices, student accommodation, healthcare facilities or retail. They provide a very tax efficient way for investors to gain exposure to these sectors without having to get involved in acquiring or managing the underlying properties. Investors can benefit from the distribution of rental income and also from any uplift in the underlying property values. Pension funds, institutions, private equity funds and individual investors are attracted by the ease of investment and liquidity as REIT’s tend to be publicly quoted. It remains to be seen how a REIT regime is introduced in the Irish context. The devil will be in the detail, but this is a very positive development for the property industry in Ireland and will certainly help in recapitalising the market as the banks and NAMA continue to unwind their exposure to property”.
CBRE welcomed the retention of the 9 per cent rate of VAT for the hotel and tourism sector. The property consultants also welcomed the Government's commitment to retain the favourable 12.5 per cent corporate tax rate, which is critical to inward investment and job creation.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 110 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni.