Oireachtas Joint and Select Committees
Thursday, 9 July 2015
Committee of Inquiry into the Banking Crisis
Nexus Phase
Ciarán Lynch (Cork South Central, Labour) | Oireachtas source
Okay. So would the model ... I just want to test this out. Developer A is going to develop a retail commercial office space unit, they go to the bank and say, "I have X amount of square metres or whatever, my rental ... the rental market is going to be X per square metre, and I'll fund my development costs through the rental income that will be based upon that. But not only will I be basing my rental income on year one, but, into the future, I'm assured that the rents can only go up." Was that an influencing factor in terms of how the banks would actually capitalise that development?
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