Around the Block: This week's sale of Hamilton Osborne King to international property company Savills has sent shock waves of envy through the Dublin estate agency business. Globalisation is clearly an essential part of the business now that three of the four biggest commercial agencies have an international name behind them.
The odd man out, Lisney, does have a relationship with Cushman & Wakefield but that doesn't seem to be working particularly well for Dublin business. With international partners seen as absolutely essential in sourcing investment property abroad for the insatiable Irish, as well as international enquiries for property in Ireland, Lisney seems to have no option but to find a high profile partner out there, though that may be difficult with most of the heavy hitters already committed. Even though Lisney directors' fees have raised eyebrows in recent years, there will inevitably be pressure from within the company to forge a link abroad that might bring in a windfall like the one over at Molesworth Street.
Meanwhile, HOK must still be celebrating and there is furious speculation around as to who is getting what. The loot will be shared among 20 directors and managers but a sizeable sum has been set aside which will be shared among staff depending on length of service and their role. Even the most junior can count on at least an extra month's salary - clearly a good move at a time when agencies are finding it increasingly difficult to hold onto good staff.
HOK managed to keep a tight lid on the deal which was due to be announced to the London stock market by Savills on Tuesday morning. Savills didn't even tell their Irish partner, HWBC, until 3 in the morning, which is when the deal apparently was finally signed off. Needless to say the news had filtered out to The Irish Times which carried it that morning causing much choking over the croissants!
Colliers Jackson-Stops meanwhile quietly tied up a deal a couple of months ago but only announced it yesterday. The Dublin agency has sold 60 per cent of its shares to Colliers CRE plc, one of the top 10 real estate agencies in the UK. The deal, part cash and part share, is based on a value of €9 million for the firm, and will see directors, like Marcus Magnier, Roderick Downer and MD Declan Stone trousering a tidy sum, along with TJ Kearns, Nick Coveney and Michael Donohoe. The pay-off also allows Downer, who has been with the company since 1973, to step down from day-to-day management. PS - Let's hope that Colliers will also be looking after their staff like HOK.
Doing Justice to agents
Senior civil servant Thomas Lynch has his work cut out to try to sort out auctioneering practices in his new role as director of the new National Property Services Regulatory Authority. Lynch was plucked from the Department of Justice after a lengthy selection process involving up to 20 candidates. While Michael McDowell had indicated that the job was likely to be given to someone familiar with the property industry, he obviously felt that a skilled pair of hands - and possibly no links to the incestuous property business - would produce the best results. Now all they have to do is establish their premises in Navan and come up with a code of conduct for estate agents who continue to flummox everyone with their understated approach to guide prices!
Sites for South Africa
Developer Niall Mellon has had a runaway success building houses for the poor of South Africa and we wish him luck in his latest fundraising attempt for the cause. He wants to raise €20 million by getting Irish developers to donate individual house sites, that could be built on and channel the proceeds to South Africa. The approach deserves support from an industry that has done exceptionally well over the past couple of decades and no doubt legions of developers will see the merits of the scheme which it's hoped will fund 30,000 homes. It's hoped that builders, developers and landowners all across the country will donate sites for houses and that local tradesmen and women will volunteer their time to build the houses. To get the ball rolling, Mellon has pledged one site for every 10 donated.
