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Opening Bell: Greece stays left, retail rents to spike in Dublin, valuing Betty Power

Alexis Tsipras has vowed to serve a full four-year term as Greece's Prime Minister – after ...
Newstalk
Newstalk

07.36 21 Sep 2015


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Opening Bell: Greece stays lef...

Opening Bell: Greece stays left, retail rents to spike in Dublin, valuing Betty Power

Newstalk
Newstalk

07.36 21 Sep 2015


Share this article


Alexis Tsipras has vowed to serve a full four-year term as Greece's Prime Minister – after weary voters took part in the country's fifth general election since 2009.

The charismatic leader of Syriza secured 35.5% of the vote, with the conservative New Democracy party coming in second place with a 28.1% share.

It is a decisive victory, as opinion polls conducted on Friday had put Mr Tsipras and Vangelis Meimarakis, his conservative rival, just half a percentage point apart.

Syriza is still six seats short of an overall majority, meaning the party is likely to form a new coalition with the Independent Greeks – a right-wing group with 10 seats.

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New research from Davy stockbrokers suggests that shares in Paddy Power could be undervalued by 30% as the company plans to merge with Betfair.

The analysts say that the new entity is likely to "rank as one of the highest-growth stocks in Europe."

Paddy Power's stock closed at €102.70 on Friday - Davy has set a new target price of €129.

Davy forecasts that Paddy Power and Betfair will experience £64.6m (€88.8m) in revenue synergies and £50m (€68.7m) in cost synergies when they join together.

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New research says that retail rents in Dublin will rise by 9.3% by the end of 2016 - that figure rises to 16.5% for renters on Grafton St.

The report was prepared by Savills, using a model created by its economists and the The Economic and Social Research Institute (ESRI).

These rents have increased by 3.7% during the last year - rising population and increases in consumer spending are expected during the next 18 months.

Dr John McCartney, director of research at Savills commented on the figures: "Our analysis shows that retail rents are particularly sensitive to employment and population growth.

"Ireland is experiencing the fastest rate of jobs growth in the EU and Dublin's population is now rising at its second fastest rate in history. These factors have re-ignited demand and this is driving competition between shopkeepers for the best retail units."

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NAMA's Project Arrow Portfolio could be left with only one bidder according to reports in The Sunday Times.

Apollo Global Management may pull out of the contest - following Goldman Sachs and CarVal who already withdrew their joint-bid.

In that case - Cerberus Capital Management would be the only party left bidding for the €7.2bn loan portfolio.

Cerberus' purchase of NAMA's Northern Irish portfolio, Project Eagle, is currently being investigated in a probe over suspicious payments which were allegedly made in connection with the sale.

The firm has strongly denied that it made any inappropriate payments.

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