The Big Developers: Ballymore currently has 52 projects, which will take in excess of €30 billion to develop, writes Colm Keena, Public Affairs Correspondent.

There is no denying the scale of the operation now being run by Seán Mulryan's Ballymore Properties group. According to a spokesman for the group, it currently has 52 projects in development, involving 4.5 million sq m. The "gross development value" of these projects, ie the cost of developing them, is in excess of €30 billion.

Of the properties currently under way, approximately 800,000 sq m are in Ireland, 3 million sq m in the UK, and the remainder in continental Europe. However, no figures as to the value of Mulryan or his group were disclosed.

The group's holding company, Ballymore Properties, switched to unlimited liability status in 2005 and the latest filed accounts available are for the year to the end of March 2004. In that year, turnover was €205 million, compared to €65.8 million a year earlier and €134 million in 2002. Approximately two-thirds of turnover was in the UK, and one-third was in the Republic. Pre-tax profits were €18.3 million, up from €3.5 million in 2003. Net assets were €126.8 million.

Stock, including development properties and work in progress, was €509 million. The accounts show that stock is one item that was growing steadily upwards. The 2003 figure was €352 million and the 2002 figure €173 million.

The 2004 accounts noted a number of transactions with Mulryan in a personal capacity. The group provided construction, project management and other services to him to a value of €7.6 million and during the year he bought a number of properties from the group for a total of €11.4 million. Also, during the year he was paid €6 million for development rights.

Mulryan's UK holding company, Ballymore Properties Holdings Ltd, which is part of the Ballymore Properties group, had a turnover of £62 million sterling (€89 million) in the year to March 2006, down from £136.8 million sterling the previous year, and net assets were £90 million sterling. The group owed £50 million sterling to other group companies and £328 million sterling to the banks. The UK group's banks are listed as AIB, Anglo Irish Bank, Fortis Bank, Irish Nationwide, Wurttembergische Hypothenbank and Royal Bank of Scotland. The accounts also state the group made charitable contributions of £468,780 sterling.

Mulryan and fellow developer Patrick Kelly own a group called Markland Holdings which owns property in Ireland, the UK, the US, the Czech Republic, Hungary and Germany. According to the group's website it has a property portfolio worth more than €450 million.

The group has a number of mortgages registered with Anglo Irish Bank on properties all around Dublin city. In 2005, group company Markland House Properties Ltd owed €44.3 million to other group companies, according to the latest accounts for Markland House. During the year the company sold its investment properties to another group company, Markland Georgian Property Ltd, for €27 million in an arms-length transferral at normal commercial terms. The company also capitalised its reserves, so that at year's end its share capital was worth €46 million, up from €4 million in 2004.

The Markland group does not produce consolidated accounts.

Mulryan has followed a well-worn path from being a builder to being a developer. Builders make a profit margin on their buildings, whereas developers can reap huge returns on their projects if all goes according to plan. Dublin developers have sold office buildings for more than double the cost of their construction, according to one accountant. If an agreement can be reached with a prospective tenant, and a prospective investor, massive profits can be achieved without any risk. During the boom years, established developers were able to get 100 per cent finance from the banks.

Ballymore is now a long way from the early 1990s when the group was counting in thousands rather than millions. The 1994 accounts for Ballymore Securities, as the holding company was then known, show it had a turnover of £562,000 and incurred a £54,000 loss and its housebuilding operation, Ballymore Homes, made a profit of £565,000.