Central Bank: Ireland could face property ‘fire sale’

New report cites a need to explore possible policy interventions for indebted funds that hold €13.6 billion worth of real estate

The Central Bank concluded from its survey that there is a cohort of 24 property funds that have reported “significant levels of leverage”

The Irish real estate sector is susceptible to a “fire sale” of property due to international funds that control billions of euro worth of homes and offices carrying significant levels of debt that may not be paid on time.

A research paper published by the Central Bank said large property funds in Ireland with more than €13.6 billion in assets face narrow timeframes to start repaying borrowed cash, which could spark a “fire sale” that ...