McInerney Holdings eyeing up further acquisitions in England

House builder McInerney Holdings is eyeing up further acquisitions in England, and signalled yesterday that much of its growth this year would come from there.

McInerney chairman Ned Sullivan, told the group's annual general meeting yesterday that demand in Ireland remained "steady" despite caution on the part of buyers.

However, he told shareholders at the meeting in Dublin that reservations from its housing developments in England have been "running at a level roughly 35 per cent higher than the same period last year".

"The acquisition of Bowey Homes in August 2006, and the recent acquisition of Lancing Homes in February 2007, significantly increased our operational capability in the UK.

"The directors intend to continue to pursue a strategy of expansion in England, both organically and by further acquisitions."

Speaking after the meeting, chief executive Barry O'Connor said the group was continuing to look at potential purchases in England, but was not on the verge of doing any deals.

He pointed out that McInerney had a presence on the northwest and northeast coasts of England, and said it would ideally target something further south "between Birmingham and London".

Mr O'Connor said the group had unlimited scope for growth in England. He pointed out that McInerney built 1,500 of the 175,000 new homes that were completed there last year.

In terms of the Irish market, Mr O'Connor said demand in many of its developments was stronger than last year, but explained that more expensive homes, those priced at €350,000-plus, were becoming more difficult to sell. "Affordability has definitely become an issue in the Irish market."

However, he added that the majority of McInerney homes were priced at less than this.

He said as the group focused on building new homes for first-time buyers, the uncertainty over stamp duty was not an issue for the business.

"We need clarity and certainty but from our point of view 98 per cent of our product does not attract stamp duty."