LA wealth managers promote Hollywood property project

INTERNATIONAL WEALTH managers and advisers have been busy trying to encourage rich Irish investors, who have hoarded cash, to part with some of it for investments.

The latest visitors attempting to tap the cash pile were two Californian businessmen, Tony Thompson and Kevin Shannon, who were in Dublin last week seeking investors for a trophy property in Beverly Hills, Los Angeles - home to Hollywood stars, designer shops and plastic surgeons.

Thompson sources investors for "distressed" property assets, while Shannon, vice-chairman of investment properties at real estate group CBRE in LA, buys and sells the properties. They have completed 20 deals worth $1.1 billion over the last four years.

Thompson describes himself as "combat-hardened", having worked through four recessions, and says the current crisis offers opportunities.

They declined to provide details on the Beverly Hills property as only a few prospective buyers were aware of it and bids have to be lodged by July 1st.

However, they said it was located in the "golden triangle of Beverly Hills", where only two transactions have been completed since 2005. The figures explain why - rents have risen 40 per cent over the last 18 months and occupancy rates stand at 2.8 per cent.

Shannon says the subprime debacle has shaved 5-10 per cent off the value of trophy assets, compared to 10-15 per cent on other commercial properties.

One of the few Irish landlords in the "triangle" is Sloane Capital, the property investment firm owned by bloodstock tycoons John Magnier and JP McManus, and Limerick property investor Aidan Brooks. Sloane owns property on Rodeo Drive, the famous Beverly Hills shopping district.

Thompson says their Beverly Hills property is a "generational opportunity", given how few properties in the area come to market.

Convincing cash-rich Irish investors that the dollar has hit bottom - rather than the merits of buying in Beverly Hills - will be the challenge.