Dublin property group Howard Holdings is expecting rapid growth over the next few years following its acquisition of four key development sites, two of them fronting on to the Thames outside London. The other two deals agreed last week involve the redevelopment of Cork Airport Hotel and the replacement of the Havesham Hotel, at Rochestown, Co Cork, by a townhouse scheme.
Frank Gormley, chairman of Howard Holdings, says the deals form part of an expansion plan by the group, which has projects worth £90 million sterling either under way or in the pipeline in Britain and Ireland.
The company's shares are trading on the FTSE at 61p sterling after starting at 27p a year ago and going at one stage to 811/2p. Howard is expected to get a Dublin listing shortly. Howard is paying £10 million for a site of 4.5 acres on the Thames, near Richmond. A number of existing buildings are to be demolished to make 1.8 acres available for a development of 87 apartments and 160 car-parking spaces. A further 133,000 sq. ft of buildings are to be leased back to the vendor an initial rent of £500,000 per annum. Howard is paying £4.5 million for the second riverside site of 3.5 acres at Kingston, which will be used for a mixed development including a marina. The site is located beside one of the busiest retail areas outside London city centre where the major traders include John Lewis and Bentalls. Howard is in discussions with the planners to provide a marina with 30 berths, 60 apartments, 30,000 sq. ft of offices and 10,000 sq ft of shopping. The project is expected to have an end value of around £30 million. Dublin agents Christies, which is to handle both schemes, has formed a link with Brown Cooper Marples, a London agency based in the West End.
In Ireland, Howard has paid £2.2 million for the 30bedroom Cork Airport Hotel, which is to be upgraded and expanded to provide 150 bedrooms and a leisure centre. The hotel will be rented to a hotel chain at a projected initial yield of around 6 per cent.
The Havesham Hotel, overlooking Cork harbour at Rochestown, was bought in a private deal for £1.5 million. Howard is now to seek planning permission to demolish the hotel and replace it with townhouses.
