DUNLOE Ewart could make a pre-tax profit of between £27 million and £33 million from a proposed £400 million development in Belfast. Mr Noel Smyth, chairman of Dunloe Ewart, told The Irish Times, the projected profit from the plan is between £80 million and £100 million that would be divided equally between the three partners: Dunloe Ewart, John Laing Property and MEPC.
If there are no hitches that could come through in about three years' time. The potential from the project is substantial when compared with Dunloe Ewart's pre-tax profit of £7.6 million last year. The 750,000 square feet development, announced last week, is for a mixed use retail, leisure, and residential development located along Royal Avenue and North Street, in central Belfast. It is, however, competing with two other projects for approval from the Belfast Regeneration Office (BRO). Land Securites/Deramore Development, and MDC, are planning similar developments nearby.
Nevertheless Mr Smyth is optimistic that the development will go ahead. And if it does not, Dunloe Ewart, will go ahead with its major investment opposite the Castlecourt Shopping Centre, he said. It was this planned investment which prompted the three-way venture. MEPC which owns the Castlecourt shopping centre on Royal Avenue had decided to enter into a partnership arrangement with John Laing, the centre's previous owner in a plan to extend the centre.
Dunloe Ewart's site cost £15 million. Under the arrangement with its two partners, £10 million will be paid back to Dunloe Ewart. The equity funding will be small and the borrowings will be off-balance sheet, said Mr Smyth. The development, he added, could be 70 per cent prelet. Mr Smyth is excited about the project despite the political uncertainty in Northern Ireland. The timing is "not only right but couldn't be better". If the project goes ahead, it would create 1,500 construction jobs and up to 2,000 permanent jobs when completed. The BRO is scheduled to examine the three projects in September. It will also assess the demand for retail space in the centre of Belfast.
Dunloe Ewart has been involved in a number of projects this year. In one of them, British Land paid £33.5 million for a 50 per cent stake in the group's Cherrywood development in south Dublin. Also British Land purchased a 5 per cent stake in Dunloe Ewart for £6 million.
British Land owns the St Stephen's Green Centre and has a half-share in the international Financial Services Centre in Dublin.
