Revaluation adds €37.5m to value of Clarendon

The property company that owns the Powerscourt Townhouse Centre in central Dublin revalued its portfolio upwards by more than €37.5 million last year, it has emerged.

Accounts recently filed for Clarendon Properties (Holdings) Ltd show that a revaluation surplus of €37.62 million was recorded against properties that had a book value of €98.6 million at the beginning of its financial year on July 1st, 2003.

Clarendon is the holding company for White Glory Ltd, which manages the retail property interests of Dublin businessman Tony Leonard. The company has 14 subsidiaries trading from its registered office at South William Street, Dublin, and three London-registered subsidiaries.

In addition to the Powerscourt centre near Grafton Street in Dublin 2, the company owns the Queen's Old Castle and Savoy centres in Cork and a landmark former Bank of Ireland building at 34 College Green, Dublin, which backs onto Suffolk Street.

Furniture retailer Habitat recently agreed to pay annual rents of some €1.2 million to occupy that building, which was acquired by Clarendon for some €22 million in 2002.

While the accounts do not specify what properties were revalued at "open market value", the exercise was undertaken by CB Richard Ellis Gunne on June 30th. Taxes of €9.6 million would arise if the interest in such properties were sold for the revalued amounts.

Turnover rose to €8.57 million in the year to June 30th from €6.55 million a year earlier. Some €1.09 million of turnover came from a 40 per cent interest in an Isle of Man company Baytown (Holdings) Ltd, which was acquired last year.

Of the €7.48 million derived from wholly owned operations, €6.95 million came from Irish operations, while some €532,000 came from its British-based operations. Operating profits at Clarendon rose to €5.26 million from €4.2 million in the previous year. After interest charges of €4.29 million, Clarendon had pretax profits of €963,000, up from €742,000.

The accounts indicate that Clarendon had agreed to acquire further properties for about €28.5 million since the beginning of the current financial year, which closes at the end of June.

With private clients of Anglo Irish Bank, the company bought the Royal Opera House portfolio at Covent Garden for £80 million (€116 million) in February 2004.