social housing Archives - Bartra Wealth Advisors

Why social housing in Ireland became popular for investors

Posted on July 13, 2021July 28, 2021 by bwa

When it comes to major types of real estate investment, the obvious contenders are residential property and commercial real estate. Therefore, it might come as a surprise that social housing has actually become one of the most popular investment options in Ireland in recent years.

Although it is difficult for individual investors to participate, there is the opportunity to participate in Bartra’s social housing projects through the Immigrant Investor Programme (IIP). At maturity of your three-year investment period, your total €1 million investment will be returned, along with Permanent Residency status for you and your family.

According to CBRE’s Ireland Bi-Monthly Research Report published in May 2021, the Irish social housing market continues to record large transactions, including the recent sale by Ardstone Capital of a portfolio of five multifamily and single-family assets for €450 million, and the acquisition of 39 units leased to Dublin City Council at Blackhall Street in Dublin 7 for €20 million. The report also noted that several annuity funds and impact funds are now specifically targeting opportunities in this sector, and the social housing market is expected to thrive going forward. So, why are so many institutional investors keen to invest in this sector?

Data published in November 2020 showed that there were 61,880 households on the housing list in Ireland, while only 9,028 social homes are currently onsite. The social housing supply falls far short of demand, not to mention that last year’s pandemic battered global construction sectors with Ireland being no exception. The likelihood is that the housing list is now considerably longer than the data published.

The undersupply of social housing did not happen overnight. A significant legacy of the 2008 financial crisis was substantial under-investment in Ireland’s real estate projects, causing the real estate supply to plummet.

Ireland’s economy has regained its momentum in recent years and maintained the highest economic growth rate in Europe for six consecutive years. Thousands of migrants are flooding into this new European financial centre, especially Dublin, and this has further encouraged a rise in rent and demand for private and social housing.

Long Term Social Housing Leasing Scheme

To accelerate social housing delivery, the Irish government has committed more than €6 billion under the “Rebuilding Ireland” campaign. Under Rebuilding Ireland, one of the targets is to deliver 50,000 social housing units by 2021, of which 33,500 units will be exclusively built as social housing, 6,500 units will be acquired from the market, and the remaining 10,000 units will be secured via lease agreements. In other words, the Irish government is encouraging property developers to build properties and lease them to the government.

The standard leasing scheme offers a lease term of 10-25 years. The Irish government (the lessee) will pay 80-85% of an agreed market rent which will be reviewed every three years and is linked to the Harmonised Index of Consumer Prices (HICP), an indicator of inflation harmonised across EU countries.

In 2018, the Irish government launched the Enhanced Long Term Social Housing Leasing Scheme as an addition to the existing leasing arrangements. The enhanced scheme offers a 25-year lease term with up to 95% of the agreed market rent, but in return, each proposal has to include a minimum of 20 property units, and the lessor (developer) is obliged to provide management services.

Bartra was interviewed on RTÉ One, Ireland’s national broadcaster about Government long term leasing of social housing

Backed by the Irish government, the leasing scheme provides high investment stability for social housing investment.

Bartra’s Social Housing Projects

As one of the leading developers in Ireland, Bartra is committed to providing high-quality social housing for families in need. All of our social housing projects are located in Dublin and are constructed by seasoned professionals including architects, planners, quantity surveyors, and construction companies. Majority of our projects will be leased to the Irish government for 25 years, therefore the income is guaranteed.

Bartra’s latest social housing development is Colmcille House, in Stoneybatter, Dublin 7. Completed in April 2021, the development is located in a prime area of Dublin, within walking distance of Smithfield LUAS stop, and offers a total of 23 apartments situated less than 2km from the city centre. It has wonderful views over the city. At Bartra, we believe that every resident deserves a high quality of life, so every unit in Colmcille House is beautifully designed and 15-20% larger than most apartments in the area.

Bartra’s complex in Stoneybatter was funded by the IIP

Hong Kong’s Most Outstanding Enterprise Awards 2020 – Bartra Wins Most Trusted Immigration Investment Services Award

Posted on January 18, 2021January 18, 2021 by bwa

Bartra is delighted to have once again been recognised by the industry at CORPHUB’s Most Outstanding Enterprise Awards in Hong Kong. Following our success at last year’s ceremony where we took home four awards, this year we were named Most Trusted Immigration Investment Services by the prestigious professional platform, which seeks to highlight enterprises on the rise and celebrate their achievements in various sectors.

At Bartra, we strongly believe that what makes us successful is our business model. As the only Irish developer with a physical office in Hong Kong that offers investors direct investments into our safe, transparent, fixed asset projects, along with the opportunity to gain Irish residency, we are the leading IIP provider and the strongest player in the market.

We pride ourselves on our 100% success and renewal rate, our robust projects in qualifying Social Housing and Nursing Homes projects, and our unmatched expertise in the IIP. Compared to other European immigration programmes, our Social Housing project offers a 100% repayment guarantee and the exit strategy is simple and straightforward without any of the hassle related to liquidation or concerns around market performance. Investors in our Nursing Homes projects enjoy the same simple and straightforward exit strategy, and receive a 20% return (4% interest each year) upon exit of the Euro1 million, five-year investment on top of obtaining Irish residency. This ensures that our IIP is not only cost-free but includes an excellent return which investors can put towards a property purchase or their children’s education. The safety of the investment coupled with the excellent return makes the IIP one of the most attractive investment migration programmes in the world.

To find out what makes Bartra’s business successful, watch the exclusive interview with our Regional Manager, Jeffrey Ling, below (in Cantonese).

Or read the interview here.

Keen to learn more about beginning your immigration journey to one of the world’s most enticing destinations – Ireland with the expertise of a best-in-class Irish developer? Contact us today!

2020 Review: Recognising Accomplishments in an Unprecedented Year

Posted on December 17, 2020December 18, 2020 by bwa

2020 has been a challenging year. It has forced people to adapt to a new reality. But at Bartra, we remain optimistic. We have seen our teams thrive on change. And our ever-present desire and drive to share ideas, to collaborate, create and innovate, and to continue making progress, is undeniable. This year has not altered our fundamental belief that great investments require three things: great locations, great people, and the right opportunities. Bartra prides itself on consistently delivering all three for clients and investors and we are grateful that we have been able to help many of our clients achieve their goals, while also being recognised by the industry for our efforts.

As another year comes to a close and we look to the year ahead, we would like to share some of our achievements and to thank everyone – clients, business partners and our staff – for contributing to our strength and success.

Accomplishments:

2 IIP project completions (Northwood, Beaumont)
Close to 100 IIP applications
4 awards

A little throwback to Bartra’s highlights from the last 12 months.

January

The Irish Government’s Ireland Strategic Investment Fund (ISIF) invested €8 million in Bartra’s co-living business at the end of 2019.
Received 20 IIP applications from Hong Kong investors since the Hong Kong office has opened in August 2019.
First Hong Kong investor, who applied in August 2019, received approval from the Irish Naturalisation and Immigration Service (INIS).

“I am proud that the ISIF has invested in our business. This is testament to both the quality of Bartra’s projects and the expertise of the personnel putting those projects together. Our development projects support local housing requirements: co-living projects offer accommodation for young professionals; nursing homes provide critically needed care for the elderly and vulnerable; social housing caters to those on housing lists. As the investment immigration arm of Bartra Group, with offices in Hong Kong and multiple cities across Mainland China, Bartra Wealth Advisors has seen increased demand for investment in the social housing and healthcare sectors, with international investors keen to acquire these government-backed asset types. We offer investors direct access to our social housing and nursing home projects, which are good, safe investment opportunities that support the local community and are also IIP-qualifying for obtaining Irish residency.”

James Hartshorn, CEO and Co-founder of Bartra Wealth Advisors.

February

Northwood Phase II, Bartra’s Nursing Home project, completed on time and within budget.
The year’s first batch of Stamp 4 visas arrived on 14 February as a Valentine’s Day gift for our clients.

March / April

In response to the pandemic, Bartra held its first webinar.
Bartra received visa approvals for applicants from November 2019 on 22 and 23 April, with a 100% success rate.
Henley Bartra, the joint venture with Henley, the global private equity real estate investor, sold Phoenix House to private Irish investors for €16 million.

May

Declan Carlyle was appointed CEO of Bartra Healthcare.
Bartra received renewal approvals for applicants from January and February, with a 100% success rate.
Clients who invested in our Social Housing project phase II and received pre-approval in April were granted Stamp 4 visas.

June / July

Construction began on our Social Housing project Poplar Row.
Batra held a webinar in collaboration with IDA and Knight Frank.
James Hartshorn, CEO and Co-founder, was interviewed by Investment Migration Insider (IMI).
Clare Guinan, who works at our Loughshinny Residential Home, was featured in Irish Times.

August / September

Loughshinny project scored 100 during an inspection for the Health Information and Quality Authority (HIQA) certification.
Bartra participated in the International Migration Summit (IMS) Summit in Shanghai.
The Poplar Row project signed a 25-year Enhanced Lease with the government.

October

Bartra held its first press conference in Hong Kong, which saw more than 30 news platforms report on Bartra over two days.
Jeffrey Ling, Hong Kong Regional Manager, was featured on Apple Daily’s news and video platforms, and hosted a webinar with a tax partner to discuss Ireland immigration.
Bartra won Uglobal Immigration Magazine’s Top 25 Developers Award.
Bartra received 50 applications from Hong Kong clients.

November

Beaumont, our biggest nursing home project to date, completed construction ahead of schedule and entered HIQA inspection phase.
Bartra participated in one of the world’s largest international migration summits in China, the 2020 Global Migration Summit of Entry-Exit Industry.
Bartra won Supreme Brand of Overseas Investment & Immigration Consultant Firm Award 2020, organised by CAPITAL CEO X Entrepreneur.
Bartra held webinars with law firm Oldham, Li & Nie and tax advisory firm Cooney Carey, and with Hong Kong’s South China Morning Post.
Jeffrey Ling was interviewed by i-CABLE TV Financial News channel.

December

Bartra Homes launched a new luxury residential project, Glensavage, Blackrock, comprised of 8 contemporary homes and 14 apartments.
Bartra secured planning permission for our €25 million co-living scheme on Merrion Road.
Bartra was named Innovator of the Year – Real Estate at the HKB Management Excellence Awards.

In the past year, Ireland has ranked among the best-performing economies in the western world, with GDP growth of 3.4% (ESRI). Looking ahead, export-driven growth of 5.3% in 2021 is forecast (Ibec).

With regard to the IIP, we believe that interest in the programme will steadily increase as businesses and affluent individuals recognise the personal and professional advantages of maintaining a foothold in Europe. We foresee strong demand from China, Hong Kong, Vietnam, India and the UAE, as well as interest from South Africa, Canada and the UK.

As a company, we are excited to welcome 2021 and will continue to deliver our world-class services and products to investors and clients. In the spirit of the tagline of our Immigration Insight video series – Joy of Living – we’d like to take this opportunity to wish everyone a joyous, prosperous and healthy New Year!

Impact Investing – The potential of Social Housing and Nursing Homes in Ireland

Posted on November 14, 2020November 14, 2020 by bwa

Social Housing and Nursing Home markets

Not just in Hong Kong, but everywhere else in the world, we see a high demand for and a shortage in Social Housing and Nursing Homes. This puts a lot of pressure on the government and the people, but it means there are great potentials in these projects.

Beaumont, our biggest nursing home project to date, has just finished construction ahead of schedule and will now enter the HIQA inspection phase.

The fact is, the investment in these markets have well been the trend in Europe and the UK. This is because they receive guaranteed long-term secure income streams from a local authority or an Approved Housing Body. This makes it particularly appealing to institutional investors and pension funds, as investors get to enjoy long-term leases with little or no day-to-day management, repair, or maintenance responsibility.

Such growth is seen in the Social Housing market in Ireland and is reflected in the CBRE Group report for the past six months. In Ireland, there are a total of 68,693 households waiting to be housed. However, no more than 15,000 are likely to be developed in 2020.

With its ageing population, the undersupplied Nursing Homes are also seeing strong demands in Ireland. The percentage of over 65-year-olds is expected to reach 16% of the total population, accounting for 860,600 people. This means the country will need 7,500 new nursing home beds in the system by 2020. However, very little is expected to be built in the next few years, resulting in only the 1,144 beds which are currently on site.

To meet the required volume of units and to reduce the housing waiting lists, the collaboration between the public and the private sector to increase the delivery of much-needed Public Housing and Nursing homes is essential.

The role of our Irish Immigrant Investor Programme

As a developer who has successfully carried out many social housing and nursing home projects, we offer these projects as the Enterprise Investment route for families who are considering immigration to Ireland under our Irish Immigrant Investor Programme (IIP). Our extensive Irish immigration experience and expertise in the investment field, as well as our strong business network of partners, have allowed us to maintain an application approval rate of 100% and a 100% renewal rate.

Applying for Irish residency via IIP is very straightforward, with short processing times and no quotas. Investment in Nursing Homes, in particular, offers Hong Kong investors capital protection with a potential profitable return. We offer a five-year term with a 4% annual return for Nursing Home investments. More importantly, we offer end-to-end services, so you can be sure that your investment and your family’s future is in safe hands all the way through the process.

Why Bartra?

We at Bartra only market investments where we have already purchased the site. All of our projects are located in Dublin, the area of highest investor demand, and long term value. We only use high-quality design team members including architects, planners, quantity surveyors, and construction companies. All our projects are fully cost by independent third parties prior to being marketed to IIP applicants. The investments are structured so that there is a clear alignment of interest between investors and Bartra, that the projects are only profitable for Bartra if they are first sold and investors are repaid.

Bartra Group already has a pipeline of 435 Social Homes with a value in excess of €130 million at the moment. We are planning to construct more than 1200 homes in the next 5 years. Our Social Housing project at Poplar Row has just signed a 25-year Enhanced Lease with the government. At a 0.14 hectare size with 39 apartments, the construction started in June 2020 and is progressing on time. Our other Social Housing projects are also debt funded by various companies. Bartra Group also has a pipeline of 823 Nursing Home beds and plans to run over 1,000 beds in the next 5 years. One of our projects, the Loughshinny Nursing Home Development, has been completed and was opened in summer 2019 with residents moving in. It has also shown full compliance across all areas in the HIQA report, which is hard to achieve. Also, our Northwood project has officially opened in late May this year, with occupants moved in.

Fast becoming one of the largest providers of Social Housing and Nursing Homes in Ireland, our available IIP project slots are filling up quickly. Speak with one of our expert advisors to find out more about Bartra Wealth Advisors and our projects by completing the form below, and see how you can be a part of our projects.