Ely Group flotation will net boss €6m

THE chief executive of property firm Ely Group will see his personal holding in the company valued at €6 million when it floats on London’s Alternative Investment Market (AIM) later this month.

The Ely Group, which focuses on the sale and leaseback of residential property, will float on the AIM later this month and is expected to be valued at €10 million.

Chief executive Philip Marley, 33, who set up the company two years ago, will hold 60% of its shares after the flotation, valuing his holding at about €6m.

Mr Marley told the Irish Examiner yesterday that the sale and leaseback concept was very popular with investors and the flotation would allow for an expansion of the business internationally.

He said Ely was unique in the property development market and was highly profitable.

“We are in business two years now and we had net profits last year of €1 million and we are heading to double that this year.” The firm sells residential properties, typically apartments and student accommodation and then leases them back for 10 years, providing strong returns for clients.

“We deal with high net worth individuals and some of the top accountancy firms that advise the elite of investors. We also deal with pension funds and we have products for those looking to get into the buy-to-let market,” said Mr Marley.

Ely Group is also planning an assault on the British market following a change in the legislation allowing pension funds to invest in property.

“UK pension firms will be able to borrow money to invest in residential property, which creates a fit with the product we are offering and it is a huge market over there.

“We are also looking at South Africa and there are opportunities in America given the dollar exchange rate, which is very favourable.”

The flotation is being handled by British finance house Corporate Synergy and Mr Marley said several new board members will be appointed shortly.

He said listing on the stock market will give added security to investors and finance the expansion of the business.

Ely will be the latest in the growing list of Irish companies to float on the London market. The AIM is home to about a dozen Irish companies.