Co-op to invest €70m in site plan

UP to €70 million will be invested by Dairygold in a major development of a retail, residential and office complex on its site close to the 4Home base in Mallow, Co Cork.

Planning permission will be made in June or July, Jerry Henchy, the boss of Dairygold said yesterday.

An in-house team has been put in place to develop the business while the proposed office, residential and retail complex will be fully owned and controlled by Dairygold, it has emerged.

The Mallow site has town centre zoning and few hiccups are envisaged regarding its development which is still in the preparation stage, a company spokesman said.

The key property people appointed within Dairygold will have responsibility to develop this emerging end of the group’s business.

It also has significant land holdings near Mitchelstown, Carrigaline and elsewhere, which offer “huge potential” to the group in the years ahead, the spokesman said.

Rejecting suggestions the group is strapped for cash Mr Henchy said the group invested substantially in its businesses last year and was still able to cut borrowings.

Talk of Dairygold needing cash just doesn’t stand up in that context, he said. And he dismissed reports that Dairygold wanted cash from the South Western Services deal currently under negotiation with Philip Lynch, boss of IAWS Co-op.

Dairygold was in favour of the share options being part of the takeover plan, said Mr Henchy, but with the loan note option the group also has the right to sell out at the end of three years, if it wishes.

At this stage negotiations are ongoing and talks of a done deal between SWS and IAWS Co-op are said to be premature. Mr Lynch is due to meet the SWS board on March 30 in what is seen as a crucial meeting for all sides.

Dairygold’s land bank was valued at €180 million in 1996 at current user values. It has presumably risen substantially in value over the intervening ten years. While no further plans exist to progress other sites, the potential exists and will be exploited as the group gets its property development team better established.