Dunloe Ewart's decision to sell more than £200 million worth of development sites and investment properties in Dublin and Belfast will be closely monitored to see if it has any significant effect on both markets. It is one of the largest proposed sales in recent years from the same portfolio.
The sale is designed to allow the company to buy back 67 million shares at 55 cents a share, and also to help fund part of its development programme, following a takeover bid by Liam Carroll's Zoe Developments, which has acquired a 27 per cent stake in the company.
The new development strategy includes an office scheme at Lanyon Place in Belfast, a massive retail project off Royal Avenue in Belfast, offices at Cherrywood in South County Dublin and high tech buildings at North Road in Finglas. Dunloe Ewart's decision to offload £90 million worth of properties in its Irish investment portfolio will go in some small way to meeting the pent up demand from private investors and institutions.
There will undoubtedly be strong competition for both Bloomfields shopping centre in Dun Laoghaire and The Mill shopping centre in Clondalkin, as well as a retail warehouse at Nutgrove, Rathfarnham and five retail units at the Square in Tallaght.
Five office investments for sale include buildings in Pembroke Street, Harcourt Street and Clondalkin. In the industrial sector, the company is selling nine rented buildings at the Airways, near Dublin airport, Clondalkin and Mallow.
Dunloe is expected to secure a handsome return on seven excellent development sites it is selling in Dublin and Belfast. ost of Dublin's big developers, including Zoe, are likely to pitch for a large office and apartment site at Sir John Rogerson's Quay in the Dublin docklands, which is likely to make over £35 million. Planning permission has been sought for a high quality scheme which will include a high rise signature building.
Treasury Holdings, Zoe Developments and developer Bernard McNamara are likely to be among those bidding for a £20 million-plus waterfront site at Barrow Street, which Dunloe has contracted to buy from IAWS.
The most valuable site going for sale - 190 acres at Clonburris in west Dublin - was earmarked for a national distribution centre. It is expected to make around £30 million for Dunloe, and the same for its 50 per cent shareholder, Harry Dobson. Another £15 million-plus is likely to come from the sale of 38 acres in Clondalkin.
The three sites going for sale in Belfast are likely to attract as much attention as those in Dublin. Dunloe should get at least £15 million from its 50 per cent joint venture stake in the high profile Sirocco site. Another £6.5 million is expected to come from an office/apartment site at Fitzwilliam Terrace in Belfast, while £7.5 million should be secured for a development opportunity at Wellwood Street in the city centre.
