Profits soar at one of Ireland’s most well known developers

Park Developments, the company behind The Park retail development in Carrickmines and Dublin housing estates The Gallops and Cabinteely Park, saw its pre-tax profits jump to €6 million in 2016, on the back of strong growth in house building.

The developer, which has just brought one of the largest housing developments in the Sandyford/Stepaside area to the market in recent times at Clay Farm, which will have more than 400 units, reported a 150 per cent increase in revenues in the twelve months to December 31st 2016. Revenues rose to €45.7 million, as pre-tax profits rose from €2.9 million in 2015 to €6 million. Park paid a divided of €683 to its parent company. The developer had shareholder funds of €73 million. The company made a capital charge of €7.8 million during the year to Killiney Estates Limited.

The developer benefited from strong growth in its housing portfolio in 2016, with revenues soaring from €12 million in 2015 to €36 million. It achieved 8.3 million from land sales, up from €89,000 in 2015.

However, it warned that there may be risks ahead.

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In the notes accompanying the statement, the directors note that the there is a risk that the recent “positive rebound” in property values could reverse, “thereby impacting on the carrying value of the company’s stock of development land, increase in interest rates, change in property incentives, shortage of available land, and unexpected delays in pending property permissions”.

The company said that “high costs of borrowing and difficulty in securing attractive lending terms continue to hamper investor demand”.

Park says it has arranged funding arrangements up to December 2018 with National Asset Loan Management Limited, a Nama entity.