Development Securities digs in with €36m Gannon property deal
UK property group Development Securities has confirmed it paid €36m to acquire houses and land in north county Dublin from Gerry Gannon.
The Irish Independent first revealed the deal back in April.
In an interim statement yesterday, Development Securities said contracts have recently been exchanged with Gannon Homes.
The sale included 85 homes at the Robswall development in Malahide, as well as nine acres of land at the site.
The 85 properties have been generating annual rental income of about €1.6m and a yield of 5.52pc.
The nine-acre site has existing planning permission for an additional 154 residential units. Work has already begun preparing the land for construction.
"The 85 residential units offer opportunities for asset management and enhancement in order to add value, and a number of options are under consideration with respect to the delivery of the development site over the near to medium-term," said Development Securities.
Mr Gannon has been one of the country's biggest home builders. He's currently advancing plans for as many as 1,300 new homes in the north Dublin suburb of Swords.
Development Securities said it continues to see "strong opportunities" for development and investment in Dublin.
Last month, it completed the acquisition of a 1.7-acre site on Dublin's Burlington Road for €40.5m.
That's a joint venture with investment vehicles managed by US-based Colony Capital, as well as companies associated with developers Paddy McKillen and Johnny Ronan.
The site has planning permission for a 166,000 sq ft prime office building. Demolition works are already underway to prepare the start of construction work within the next six months.
"The development at Burlington Road will build on our track record as an experienced commercial office developer and allow us to establish a stronger presence within Dublin," added Development Securities in its update yesterday.
Last October, Development Securities paid €2.4m for a mixed-use 0.25-acre development site in the capital. That has planning permission for 12 apartments as well as a restaurant, retail and office space. It will cost about €5m to build.