Harcourt Developments, the property group headed by businessman Mr Pat Doherty, has become the second-biggest shareholder in McInerney Holdings, with a stake of just under 11 per cent. Harcourt said yesterday it had increased its holding to 10.8 per cent from 7.08 per cent and had doubled its stake in McInerney since last April.
Harcourt director Mr John Doherty would not comment on the latest investment in McInerney which cost Harcourt around €3 million (£2.36 million), and the market is uncertain whether Harcourt is taking an investment in McInerney or has ambitions to make a bid. McInerney's chief executive, Mr Barry O'Connor, could not be contacted for comment.
McInerney has a stock market value of €87 million and is primarily a housebuilder, although the group has a commercial development business through Hillview Securities and leisure developments in the south of Spain.
Harcourt itself is best known as the developer of the £200 million Parkwest development on the M50 to the west of Dublin. The 225-acre Parkwest Business Park has more than 2 million sq ft of high-specification industrial space with the latest fibre optic and telecommunications facilities. Parkwest - opened a year ago - has been aimed at multinationals in the information technology and healthcare industries.
Harcourt also has an extensive portfolio of retail developments including the Galway Shopping Centre and shopping centres in Letterkenny, Portlaoise, Bundoran and Donaghmede in north Dublin. Mr Pat Doherty is chairman and the company's directors include broadcaster Mr Mike Murphy and former ICTU president and current ICC Bank chairman Mr Phil Flynn.
Apart from its housebuilding operations - 600 units were built in 1999 - McInerney's commercial property operations includes 50,000 sq ft of industrial space completed last year. In its 1999 annual report, McInerney said it planned to increase this to 135,000 sq ft in the current year with a further 230,000 sq ft of industrial space planned for 2001. In addition, McInerney's Hillview subsidiary had an option to acquire 600,000 sq ft of industrial space in west Dublin and also has a 75,000 sq ft site at Little Island in Cork.
If Harcourt harbours ambitions to get a stock market listing by reversing into McInerney, then it probably could only do so with the agreement of current and former directors who control more than 12 per cent of the group.
Former chairman Mr Dan McInerney alone owns 6.5 per cent of McInerney while the family of the late Mr Amby McInerney own 1.2 per cent. Mr O'Connor owns 2.2 per cent, executive director Mr Joe McNamara holds 2.4 per cent while company secretary Mr Mark Shakespeare owns 0.6 per cent.
The biggest institutional shareholder is ICC Venture Capital with 19.6 per cent, Harcourt is next with 10.8 per cent. Other stakes are held by Mercury Asset Management (9.02 per cent), Standard Life (8.9 per cent), ICC Bank (6.5 per cent) and Norwich Union (4.8 per cent).
