Property developer plans to raise €30m in funding
Sunday, September 25, 2005 - By Neil Callanan
Property company Redquartz Boundary plans to raise €30 million in funding before Christmas to buy development sites.
The company, which is owned by developer Paddy Kelly, businessman Niall McFadden and former Anglo Irish banker Paul Pardy, is already involved in projects with a gross development value of €500 million.
The company raises money on a site by site basis with a minimum investment of €100,000. It charges a fee of 5 per cent of the equity raised, a transaction fee of 2 per cent on acquisition costs and a minimum quarterly development fee of €75,000.
It also charges a success fee of 30 per cent if investors achieve an annual return of more than 10 per cent on their investment. Pardy said that a planned Redquartz Boundary scheme at the Tenters in Dublin 8 should generate an initial rate of return of 22 per cent after fees over the planned three-year project lifetime.
Redquartz Boundary has bought an eight-acre site on the Naas Road in Dublin and plans to develop a mixed residential and commercial scheme on the site over the next five years. It is looking to raise €10 million for the development.
It has also bought a 32-acre site in Kilkenny where it is planning to develop a retail park and residential units. It is redeveloping the Adelphi office building in Dun Laoghaire in south Dublin and has bought Diswellstown House in Castleknock in Dublin 15.
Redquartz Boundary is also believed to be close to buying a site near the Phoenix Park. It was among the unsuccessful bidders - along with the Kelly and McCormack families - for the Jurys Doyle site in Ballsbridge, which recently sold for €260 million.
“We will look at Britain eventually and other locations such as Florida and Italy,’' Pardy said. “We won't go anywhere that we don't have local knowledge or have a relationship with somebody.”
Pardy joined the company in May of this year. He was the lead banker on the €375 million senior debt deal for the Dundrum Town Centre and has known McFadden for several years.
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