Housing demand boosts Gannon Homes

GANNON Homes, the Nama-backed builder, has notched up a third successive year in the black as the nation’s acute housing shortage and economic recovery helped lift profits by over 28pc to €4.02m in 2016.

The supportive conditions also enabled the company, which is owned by prominent developer Gerry Gannon, pictured, to lower its net liabilities by about €4m to €121.3m.

Turnover at the firm increased to €38.8m in 2016 compared to €28.7m in the previous year.

The improving finances at Mr Gannon’s firm comes as the developer ramps up construction activity after gaining planning permission for a €60m housing development at Belcamp on the Malahide Road in North Dublin.

It is his largest foray into property market since he recommenced building after the crash.

Mr Gannon was one of the most high-profile developers during the boom, responsible for swathes of residential projects around Dublin.

He was also one of the so-called Maple 10, a group of investors who bought shares in Anglo Irish Bank in order to reduce Sean Quinn’s stake in the doomed lender.

The bank loaned the investors the money to buy the shares.

Aside from the large-scale Belcamp development, which will include the part restoration and conversion of an 18th century Georgian house, Mr Gannon has overseen housing projects at Clongriffin in North Dublin and the seaside Cork town of Kinsale.

It is understood that Nama has helped fund these projects, as it manages debts and overdrafts from AIB and IRBC.

While these low funding costs may have helped Gannon Homes, the accounts state the increased turnover is the “increased activity in house construction and sales”.