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An Irish property developer has continued its expansion into the UK after closing an eight-figure deal. McInerney Holdings plc bought South Shields-based house builder Lancing Homes for £16.25 million.

The deal, which included the assumption of £3 million of debt, was funded from the proceeds of a £58.6 million rights issue on the Irish Stock Exchange.

The deal strengthens McInerney’s business in the northeast after it spent £23.6 million on Bowey Homes in August. This is the group sixth acquisition in the UK with its reach stretching from the North to the Midlands.

McInerney’s managing director Barry O’Connor said this acquisition extends the group business in the UK. “It expands our land bank and gives us immediate access to land with planning permission whilst expanding our portfolio of affordable housing product. It will be quickly amalgamated with our existing business. Overall, it strengthens our operational position and gives us access to increased volume output through new sites in an area of strong demand.”

Lancing’s managing director Michael Long added: “This is a good move for Lancing, which takes the company and its employees forward as part of a major housing company. We are proud of the reputation Lancing has gained for the quality of the houses we have built throughout the northeast. As part of McInerney, that reputation can only grow.”

McInerney has residential, commercial and leisure developments in Ireland, the UK and Spain. It reported a 16% rise in pre-tax profits to £39 million for the year ending December 31, 2006 from a £422 million turnover – an increase of 29% on 2005’s results.

Last year Lancing Homes generated a £1.5 million pre-tax profit by building affordable homes and apartments in the Northeast.

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