Dunloe House spent £5m on acquiring Dublin properties

DUNLOE House has spent around £5 million buying property in Dublin over the past 12 months, it has emerged.

It will shortly seek planning permission to convert five premises it bought into a hotel.

Dunloe purchased the five Georgian buildings at Pembroke Street, formerly the McCann Fitzgerald Solicitors offices, last October for a figure believed to be in the region of £2 million.

The deal was completed only recently, and Dunloe is currently negotiating with a number of hotel groups to lease the premises. The hotel industry is booming in Dublin, with travel agents reporting a severe shortage of suitable accommodation.

Up to 40 hotels are planned for Dublin over the next two years by companies eager to cash in on the demand.

Dunloe, whose chairman is solicitor Mr Noel Smyth, is also preparing a planning application for an apartment and office scheme at Beresford Street, beside Smithfield. The group recently bought the early 19th century cutstone warehouse and development site from Fyffes the fruit and vegetable importers, for £1.7 million.

It is believed that the scheme, which includes a 1.5 acre site, will contain around 200 apartments. If planning permission is forthcoming work will begin in October on the scheme, which is in a tax designated area near the Four Courts.

Dunloe is expected to return to profitability this year, following several years of losses, company director and secretary, Mr Brendan Kavanagh, said yesterday.

He said the company was currently assessing a number of projects with development potential, mainly in Dublin. He added that the company was watching the property market very carefully.

Dunloe is currently engaged in the redevelopment of five adjoining houses and mews property opposite Government Buildings in Merrion Street. The properties will be converted into apartments. Mr Kavanagh said the level of inquiries has been very strong to date.

Dunloe announced its preliminary results for the year to December 31st late yesterday, but they are quite historic as several events have taken place since then.

In a statement accompanying yesterday's results, Mr Smyth said that, while the results accurately reflected the company's accounting position at that time, they did not reflect the steps approved by shareholders at the company's e.g.m. last December.

Since the company was restructured its net assets have been increased to more than £6 million.

The position on December 31st was that the company showed a loss of £36,600 after tax, compared with a loss of £157,700 the previous year.