Gunnes sell stake in estate agency and financial group

Pat Gunne and the Gunne family have sold their interest in Gunne Residential and Gunne Financial Services to new investors for an undisclosed sum.

Two current directors - managing director Declan Cassidy and sales director Rosemarie Gunne - are among the new owners. Ms Gunne is a sister of the late Fintan Gunne, who played a key role in building up the business in the 1980s and 1990s.

The new investors joining the business are Marian McQuillan, Anne Walsh and Peter Fahey. The business has approximately 100 employees.

The deal does not involve the 20 per cent Gunne shareholding in the property portal, Myhome.ie.

Neither side of the transaction would disclose the price paid. In an interview earlier this year, Mr Gunne said he was expecting Gunne Residential to have a turnover of approximately €7 million this year. He said the residential business had not grown in tandem with the market in recent years.

Last year, the Gunne family sold its 70 per cent stake in commercial estate agency CBRE Gunne to international property group CB Richard Ellis. The Los Angeles-based group paid €20 million for the 90 per cent of the business it did not already own. Mr Gunne remained as managing director.

Ms McQuillan, a former director of Purcell McQuillan tax partners, is to take on the role of chief executive of Gunne residential. She will focus on developing the business while Mr Cassidy concentrates on day to day sales.

Ms McQuillan is a tax consultant and has specialised for many years in advising companies and individuals in the property sector, including in relation to structuring tax-based property investments.

Ms Walsh, previously of Viridian Power and Energy, has been appointed marketing and communications director. She has specialised in communications and PR for large capital investment projects. Mr Fahey, previously of BDO Simpson Xavier, has been appointed finance director. He will be responsible for IT as well as accounting functions.

In a statement, the new owners said they were "planning major expansion and investment in the business over the next 18 months. A number of new offices will be opened in Dublin adding to the 17 existing Gunne locations throughout Dublin, Leinster, and the north-west of Ireland".

Ms McQuillan said it was intended to "substantially grow and develop" both the residential and financial services businesses. "With renewed strategic direction and capital investment combined with the valuable experience of the existing professional team, the businesses will increase their market share substantially over the next five years."

She said the new investors would inject substantial capital in a new marketing drive.

Mr Gunne said that, as managing director of CRBE, he was not in a position to commit to the residential company at the level required. He said he was fully confident the new owners had the necessary blend of skills and competencies to assure the long term growth and success of the business.