McInerney buys industrial unit

Housebuilder McInerney has spent €11 million on the purchase of an industrial unit beside Heathrow Airport in London.

The unit covers 105,000 sq ft and also includes a one-acre plot that, according to McInerney, holds "development potential".

McInerney, which bought the property at the Park Royal Industrial Estate through its commercial arm, Hillview, has already agreed the resale of 70,000 sq ft of the premises.

The company intends to develop and then resell the remaining 35,000 sq ft, and has sought planning permission for the development of new business units on the one-acre plot.

McInerney managing director Mr Barry O'Connor said the transaction formed part of the company's desire to broaden its UK business spread through "a measured approach".

He said that demand for freehold industrial units in west London was buoyant.

"With the leasing market sluggish, Hillview has identified an opportunity to benefit from the demand that exists for freeholds, particularly in the 5,000-50,000 sq ft range."

Mr O'Connor described the deal as a "strategic purchase".

Merrion Stockbrokers analyst Mr John Mattimoe said the Heathrow deal was "not a high-risk move" for Hillview, which has already been successful in the redevelopment of industrial units in the Republic.

The company has developed more than 400,000 sq ft of industrial premises and 500,000 sq ft of retail and commercial units in the Republic.

"It's a tried and trusted method," according to Mr Mattimoe.

Shares in McInerney closed unchanged at €3.90 last night.