×

Notice

The forum is in read only mode.

  • Page:
  • 1

TOPIC:

Guniness may not move after all 17 years 3 months ago #1

Just heard on the news they are doing an evaluation in to the move away from James gate.

17 years 3 months ago #2

Odd. Though the bigger question would be what happens to the production currently at Kilkenny and Dundalk.

17 years 3 months ago #3

A little more info from the Irish Times:
[url:3i6oqak2]http://www.irishtimes.com/newspaper/breaking/2009/0119/breaking71.htm[/url:3i6oqak2]

17 years 3 months ago #4

The proposed move wasn't based on the considerations of the brewing process. It was to do with the fact that St. James Gate was a very valuable piece of real estate.

There's no doubt it's still a valuable piece of land but not nearly as much as the silly money that was being talked about even less than a year ago. I said at the time, Diageo had a look at the sums, figured that selling St. James Gate less the cost of fancy new brewery in the sticks equalled a big pile of money in the bank.

This announcement is just means they've had a look at the sums again and have figured out that with no more frenzied land buying going on, the big pile of money in the bank scenario isn't going to happen. Hence the move being reconsidered.

17 years 3 months ago #5

"Poc":c2vkxdw9 wrote: The proposed move wasn't based on the considerations of the brewing process. It was to do with the fact that St. James Gate was a very valuable piece of real estate.[/quote:c2vkxdw9]

I have heard this site has losses about a billion in value over the last year or so

17 years 3 months ago #6

"oblivious":3h8qx9u0 wrote: I have heard this site has losses about a billion in value over the last year or so[/quote:3h8qx9u0]

I think the site was estimated to be worth €2.5-€3 billion when the original announcement was made in the summer of 2007[/url:3h8qx9u0]

I can well believe a €1 billion drop since then, and it'll drop a lot further too. Even at an estimated value of €1.5 billion, no developer in their right mind will pay €23 million per acre to build shoebox apartments that no one will buy and commercial space that no one will rent. Even if any bank would give them the money.

My back of the envelope calculations would put a value of the site at a maximum of €900 million. I think Diageo know this too and hence are facing up to the fact that moving isn't economically viable anymore.

Though maybe we could have a whip-round at the next ICB meet and take it off their hands?

  • Page:
  • 1
Time to create page: 0.144 seconds