The international property group, Ballymore Properties, has moved quickly to dispel expectations that it may be gearing up for a public flotation with the appointment of the businessman Dr Michael Smurfit as a non-executive director. Jack Fagan reports.
Yesterday's surprise appointment of the well-known international paper packaging executive immediately prompted suggestions that his presence on the board was a precursor to taking the company public.
Dr Smurfit has a strong standing in international business and banking circles and earlier this week announced that the Jefferson Smurfit Group was to merge with the Dutch group, Kappa Packaging, to create the biggest paper packaging group in Europe. He will be chairman of the enlarged group.
A source close to Ballymore said last night that a public flotation "is not on the agenda at this stage". Property companies have been somewhat out of favour on the stock markets in recent years and two companies with strong Irish links, Green Property and Dunloe Ewart, have been taken private.
Mr Seán Mulryan, chairman of Ballymore, said yesterday that Dr Smurfit's international standing would enhance its growth prospects "and is a statement of our ambition to develop our business throughout Europe".
Dr Smurfit said he was equally pleased to be a part of the continuing success story at Ballymore. "I look forward to making my contribution to this outstanding business in the years ahead."
Earlier this year the economist Dr Peter Bacon also joined Ballymore's main board and took over executive responsibility for the management and development of the company's fast expanding central European business.
Ballymore is now involved in 28 projects in Ireland, the UK and central Europe after assembling an extremely valuable landbank over the past decade. Projects either at planning stage or under construction have an estimated gross development value of €22 billion.
Ballymore is the second-largest landowner in the London docklands and is shortly to begin construction of Europe's two tallest residential towers at Millharbour, east of Canary Wharf.
It is also about to begin development on a new 35-acre riverside district in the Slovakian capital city of Bratislava. More than €250 million is being spent on the first phase, which will include the country's largest shopping centre. The company also has a key site on Wenceslas Square in Prague where it plans to develop more than 60,000sq m (645,850sq ft) of shopping, offices and homes.
Ballymore also has assembled an 80 hectare site close to Budapest's main railway station, Nyugati, and parliament, where it is to build a major shopping centre as well as offices, leisure facilities and housing.
In Ireland, the company is developing the €400 million Whitewater Shopping Centre in Newbridge, and the Royal Canal Park residential scheme in north-west Dublin.
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