Shares in Jermyn Investments, a British property company with extensive Irish interests, have risen sharply after the group revealed it was in talks on a possible offer for the company.
Jermyn shares rose 30p to 515p sterling, which values the company at £82 million sterling (€132 million).
Jermyn's Irish property interests are held through Castle Market Holdings, which it owns on a 50-50 basis with Treasury Holdings, the investment vehicle of Mr John Ronan and Mr Richard Barrett. There was speculation in the market last night that Treasury may be the group with which Jermyn is in talks on an offer, but no Treasury spokesman was available to comment. Treasury has made no secret of its wishes to expand its property empire. Last year, the company tabled an indicative €770 million offer for Green Property. That offer was subsequently withdrawn as it fell far short of the valuation the Green board put on the company. Market sources believe that, as it seemed capable of raising the finance for an offer for Green Property, Treasury would have little difficulty in financing a bid for a company the size of Jermyn.
The Castle Market joint venture is one of the most active property developers in Greater Dublin. It is the developer of the 1.7 million sq ft Central Park development, part of which has been pre-let to First Active and Eircell.
The group is also developing the former Pelican House site on the Grand Canal, where 100,000 sq ft - about half of the total - has been pre-let to Bank of Ireland.
Castle Market also has planning permission for the redevelopment of Stillorgan Shopping Centre, although this has been appealed to An Bord Pleanala, as well as planning permission for a 542,000 sq ft development on the Allegro site in Sandyford.
The joint venture plans a move into residential property on a nine-acre site in south Dublin and a 10-acre site on the northside of the city. On its own, Jermyn has office properties in England, Guernsey and the Isle of Man.
Jermyn's results for the year to last June showed operating profits of £4.36 million sterling, of which £1.8 million came from its halfstake in Castle Market. That halfstake in Castle Market was valued at £67 million sterling in the Jermyn Investments balance sheet.
