McInerney to accelerate rate of construction

Building company McInerney intends to spend £7.6 million (€9.65 million) on major land purchases in Dublin and Cork by the end of the summer, the company's annual general meeting in Dublin was told yesterday.

Chairman Mr Roy Ferris said purchasing the land meant McInerney could build more than 1,000 houses next year, compared to 650 planned for this year. The funds for the purchase came from money raised in an open offer made to shareholders earlier this year, he added.

The meeting heard that 73 per cent of existing shareholders took up their entitlements under the offer completed in March. The meeting also heard of the company's plans to enter the British market where it currently has no presence.

Speaking to reporters after the meeting, managing director Mr Barry O'Connor said the company wanted to buy "something small", most likely an existing home builders' firm which could be used as a base to subsequently expand into the British market.

He said the acquisition would be in northern England and would cost "less than a few million pounds". He said the British market was "picking up and coming off the bottom" and now would be a good time for the company to "dip its toe in the water".

In relation to the Irish market, Mr O'Connor said he expected demand to continue at the same level "for the foreseeable future", but said there would be a slight "slowdown" in price increases. He said the company did not favour dramatic increases in prices and would rather "a slow, steady market". He said one of the biggest constraints on the company's growth was planning bottlenecks. The company was able to build more houses, he added, but was being frustrated by the planning regulations. In terms of overall strategy, Mr O'Connor said the company would maintain its geographic spread and would not move into the "tax-driven" apartment market. He said after the £7.6 million was spent the company would be "self-financing" and would not be going to shareholders again.

He added that in the medium term, at least, the company did not see itself building more than 1,200 houses a year.