Mar­let’s sell off of de­vel­op­ment sites in Lu­can and Dublin 15 bank­ing on im­pres­sive re­turns

The Irish Times - Thursday - Property - - The Market -

Pat Crean’s Mar­let Prop­erty Group con­tin­ues its sell-off of sub­ur­ban de­vel­op­ment sites across the greater Dublin area which it amassed in re­cent years, mainly when trad­ing as New Gen­er­a­tion Homes.

The Block re­ported last year that Mar­let was qui­etly sell­ing off a num­ber of its smaller de­vel­op­ment as­sets, but now it seems that the com­pany is pre­par­ing to sell off sites that only Mar­let might con­sider in­suf­fi­cient in scale to war­rant de­vel­op­ing.

In Finnstown, Lu­can, it is sell­ing a 2.47 hectare (6.1 acre) site for­merly named Coolam­ber on which Mar­let se­cured plan­ning per­mis­sion last year for 94 homes. The site is guid­ing ¤7 mil­lion (¤1.15 mil­lion per acre) by pri­vate treaty through joint agents CBRE and Leahy Es­tate Agents. In 2006, a con­sor­tium paid ¤20 mil­lion for the site, prior to Mar­let qui­etly pick­ing it up for an undis­closed sum dur­ing the re­ces­sion.

Mean­while at Hol­ly­woodrath, Dublin 15, it is sell­ing an 8.3 hectare (20.51 acre) site with a guide price of ¤13 mil­lion. Com­pe­ti­tion is likely to be strong too as Mar­let has se­cured plan­ning per­mis­sion for 183 houses on the lands, about two-thirds of which are three-bed units.

The site ad­joins the suc­cess­ful Hol­ly­woodrath hous­ing scheme be­ing de­vel­oped by Re­gency, who are likely to be among the top bid­ders given its strate­gic value. New three-to-four bed homes at Re­gency’s scheme range in price from ¤335,000 to ¤425,000.

It is be­lieved that Mar­let paid just a frac­tion of the ¤633,850 per acre price now be­ing guided for its site when it ac­quired the lands around 2014. It was re­ported that Re­gency paid about ¤13.5 mil­lion for their ad­join­ing 68 acres, equat­ing to about ¤200,000 per acre.

Mar­let is likely to have paid even less when it pur­chased closer to the bot­tom of the mar­ket, from com­pa­nies in re­ceiver­ship as­so­ci­ated with de­vel­oper Bernard Mc­Na­mara.

Fil­ings for those com­pa­nies sug­gest that the pro­ceeds from the sales of their Hol­ly­woodrath lands amounted to just ¤3.275 mil­lion in to­tal, or about ¤160,000 per acre. If the price guided on the Mar­let site is ex­ceeded when ten­ders are re­ceived later this month through joint agents CBRE and McPeake auc­tion­eers, the com­pany and its fi­nan­cial back­ers, M&G In­vest­ments, might quadru­ple their orig­i­nal in­vest­ment – a very healthy re­turn with­out hav­ing to build a sin­gle house.

Finnstown in Lu­can: Mar­let se­cured plan­ning per­mis­sion for 94 homes on the 2.47-hectare site last year

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