Courts China
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Ireland-China Business Association Clyde Courts China Irish entrepreneur, Sean Gallagher is one of Ireland’s best known entrepreneurs and with his latest company, Clyde Real Estate, he has his sights set on becoming one of Ireland’s leading developers. “There are four legs to any stool for developing large office blocks in prime Data Centers and Digital Fortress, which a business owner,” asserts serial city-centre locations and lacked the between them own or operate more than entrepreneur, investor, business mentor, diversity of output which he felt was 20 data centres across the US. The duo former Dragons Den supremo and necessary to meet emerging demand established Clyde Real Estate with no one-time Presidential candidate, Sean from multiple sectors. “In 2015, the less an ambition than to become one of Gallagher. “You have to have the right country was beginning to emerge from Ireland’s leading investors and commercial business idea, the right team in place to the downturn and we realised that there real estate development companies and a execute your plan and you need a suitable was a considerable shortage of office and premium provider of office, technology, funding avenue to start the business and industrial production facilities across the life sciences and production facilities support its growth. The fourth thing you country. There were office blocks being around the country. The company’s first need is a place from which to operate built in commercial business districts in venture was the former Alcatel Lucent your business.” the heart of the city, but outside of that, building in Blanchardstown, Dublin 15, a in the suburbs and in large urban areas, vast facility of 330,000 sq. ft. set on a 16- Clyde Real Estate, Gallagher’s most there was a dearth of new building. That acre site. Half of the building had formerly recent business venture meets these was where we saw a gap and we realised been allocated to production while the criteria in spades. He had previously that there was a bridge to be built between remainder comprised a large office and invested in property in a personal business and commercial properties.” administrative space set across three floors. capacity and acquired an understanding of the intricacies of the market when Gallagher teamed up with Colm Piercy “Typically, our strategy is to dispose of he established SmartHomes, an early who has an equally formidable track record the redundant portion of the building adopter of the internet of things in the as a technology entrepreneur and investor which in this case was the empty home and one of his earliest successful, in digital infrastructure, technology and production facility, which we sold to large-scale businesses ventures. telecom ventures. He was the founder Equinox, a data centre company that and Group CEO of the Digiweb Group, an went on to secure planning permission Clyde Real Estate represents a more independent Telecoms, Cloud and Managed for a significant data centre complex direct play on actual bricks and mortar IT services provider that now includes which will be a valuable asset for the and the idea was sparked in 2015 Viatel, Digiweb and Smart Telecom with country in the future,” says Gallagher. when the recovery from the financial operations across Ireland, the UK and “With the remainder, we developed very crisis was gathering momentum and Europe. Colm also co-founded Dataplex in high-quality office space and we have business activity and new investment 2011, a successful wholesale Data Center since leased that space out to tenants.” was beginning to accelerate. Gallagher, provider. Since 2013, his investment however, noted that much of the new company, Chirisa Investments, has become Other headline grabbing deals include the construction activity was centred around the lead investor in data centre firms, 365 purchase of the former Braun building in 62 Ireland-China Business Association Carlow, a facility of 250,000 sq. ft. set on in both the social and private housing 30 acres that had been zoned for industrial markets where significant pent-up use. Gallagher has been actively working demand continues to exist. with the IDA to attract a tenant of sufficient quality and scale to occupy the building and While Clyde Real Estate has accumulated the site was recently rezoned by Carlow a substantial portfolio of assets in a County Council from industrial to general relatively short time period, Gallagher is enterprise and employment use which will bemused and occasionally frustrated at significantly enhance end-user options. the slow pace at which the commercial development market operates. A substantial building of 80,000 square “Compared to any other business I’ve feet close to Shannon airport has also been involved in, property is slow and it been added to its growing portfolio and requires patience. You can have the most has since been redeveloped and fully attractive building in the world but if the let. The company has also purchased a market turns and tenants with a need for number of facilities in Cork, Limerick and it cannot be found, you just have to wait Dundalk. “To give you some context, we it out and continue to absorb the capital focus on suburban Dublin or other large and operating costs until a suitable urban areas where there is good road tenant is found. This is particularly true infrastructure, a growing population, of large office or industrial facilities convenient access to ports and airports where finding the right tenant can often and most importantly, access to third- take some time.” Sean Gallagher level universities and colleges. From Dundalk to Blanchardstown and from to While the first five years of the Cork to Limerick, all of our investments company’s existence were focussed follow that model,” says Gallagher. primarily on laying the correct foundations, establishing a presence Both partners have established a vast in the market and forging strong network of contacts within Ireland’s relationships with estate agents, business community and in the public potential tenants and funders, Gallagher and professional services sectors which is now intent on taking the company to have been instrumental in enabling the the next level. He recently announced company to upscale so rapidly. “Whether that a further €20m of debt has been “In terms of its skills it’s with estate agents, the IDA or secured to assist in delivering several Enterprise Ireland or with business and forthcoming projects. “Having recently base, technological property owners and local authorities, secured an investment of €20m from it is about networking and building up UK investors, we now plan to go out to expertise, production long-term, trust-based relationships,” the market to raise a further €100m. Gallagher explains. “We always approach The overall objective is to secure €500m quality and calibre a project on a collaborative basis. It’s not of assets and when we achieve that just about building a property portfolio, target, we will push it out further. As of investment we also want to help create jobs in urban we continue to expand, we will attract regional areas and in suburban Dublin. further investment,” he states. options, China is Our driving force is to create suitable spaces for businesses because that’s a FDI clients are a key target market and now a global leader key requirement for any business if it is in addition to working with the IDA going to get off the ground and grow and and other inward investment agencies, across many sectors. develop. We want to feature a range of Clyde Real Estate engages proactively facility types in our portfolio including- with tenants and supports them with Countries all over small start-up units, larger follow on planning applications and in addressing facilities and substantial manufacturing any issues which may arise on site. When the world are eager and production sites.” required, they also assist in assigning suitable project management teams or to attract inward Clyde Real Estates has developed contractors to deliver the project. “When particular expertise in the data centre companies come in, they need certainty investment from field market and a number of sites they and if they have a large building, that can have acquired have been identified as be adapted quickly and cost-effectively China and Ireland is suitable for reconfiguration to data centre to their needs, it means that they can be usage. It is also examining opportunities in the market and executing their plans no exception.” 63 Ireland-China Business Association much more rapidly and with far greater certainty,” says Gallagher. Clyde Real Estate’s current property portfolio features a broad mix of tenants including technology and call centre clients, finTech, life science and financial services companies as well as administrative centres and call centres. The scale of the companies represented in its portfolio is equally diverse and ranges from small and medium-sized operators right up to international corporate giants such as Intel, Citibank and Nokia. Gallagher is impressed by the calibre of developers operating in the Irish commercial property sector but says that what distinguishes Clyde Real Estate impressive record in attracting inward A strong supporter of IDA efforts to is the fact that the two founders are investment from around the world. encourage greater regional dispersal seasoned entrepreneurs with experience “We have been successful in attracting of inward investment, Gallagher says across multiple sectors. This gives the companies who want to use Ireland that it will require significantly greater company an edge, he says. “We talk as a base to sell products and services effort to promote and educate investors the language of business and we have a into the European market.