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Irish central bank to assess commercial property-focused funds

DUBLIN, Dec 4 (Reuters) - Ireland's central bank will conduct a "deep dive" into the role of property funds in the domestic commercial real estate sector and assess whether a macroprudential response is needed to any potential risks, governor Gabriel Makhlouf said.

Research from the central bank showed on Wednesday that Irish investment funds now account for more than 35% of the country's strongly growing commercial real estate market, having invested a total of 18 billion euros in Irish property and land.

"My prime motivation is to understand much, much more and shine a light on exactly what's going on because one thing I want to absolutely avoid is getting on the back foot if something happens and it has an impact on the financial system as a whole," Makhlouf told a news conference. (Reporting by Padraic Halpin; Editing by Hugh Lawson)