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18 May 2007
Michael
O'Flynn: the shy and retiring type
In the
first UK interview, Tiger man reveals new retirement home
venture. Sinead Cruise reports Slight of build and mild of
manner, Michael O'Flynn does not immediately strike you as
an empire builder. But do not be fooled by appearances.
The Cork
man, chairman of the O'Flynn Group, one of Ireland 's most
powerful property investment and construction conglomerates,
is cosseted in a discreet nook in smart West End of London
restaurant when I arrive for our long-awaited meeting.
Flanked by
John Nesbitt and Martin Claisse, are responsible for growing
the group's property division, Tiger Developments, from the
London office as 9 Clifford Street (pictured Right), O'Flynn
greets me warmly.
Despite
years of achievement and being one of the best-connected men
in Ireland , he tells me he is always very uncomfortable
about meeting journalists for the first time.
‘The
problem is I can't stand talking about myself,' he confides.
‘But I'm always happy to talk about our business. That's
when I feel most comfortable.'
If he is
shy and meek while talking about himself, on what subject of
property, O'Flynn is in his element.
Sharpened Claws
Set up as a
joint venture between Goodbody Stockbrokers in 1999, Tiger
has forged a reputation for executing smart deals in a no –
fuss manner.
Since the
O'Flynn Group bought out Goodbody last year, transaction
activity has been turned up a notch and Tiger is learning to
deal with the attention its €2.5bn (£1.7bn) property
portfolio and increasing market presence is starting to
bring.
O'Flynn
attributes much of Tiger's recent growth to an
entrepreneurial atmosphere that enables a free flow of ideas
between employees and management.
He is
fiercely productive of the open forum that characterises the
weekly meetings, which inspired plans to set up Victoria
Hall, one of the UK's first student accommodation providers
in 1996; the Atrium serviced apartments business in
Manchester, and the Elysian Buildings in Cork, which is
destined to be Ireland's tallest residential tower.
‘It's very
important that our people feel they can come to us and we
will listen to them,' he says. ‘I want to impart confidence.
I want people to come to me with an idea and then go off and
do it.'
Demonstrating levels of enterprise and investment selection
skills much more akin to a private equity outfit rather than
a property investor-developer, the O'Flynn Group is poised
to enter the retirement property market with the launch of
Shelbourne Senior Living. The venture, O'Flynn says,
provides his team with the perfect platform to showcase
their talents for nurturing property-backed business.
‘The
Shelbourne model is very much based on Victoria Hall where
we identified a strong business case in providing students
with the best accommodation their money could buy.
‘The same
goes for seniors. We hope to provide a property where their
every need is catered for. Demand is clear in both markets.
‘These businesses show how we have developed quite an
opportunistic, private equity approach to property over the
years.'
O'Flynn is
also looking to crack into self-storage, car parks and
hotels, and his ambitions extend beyond the UK .
Tiger is
reaping the rewards of long-term research into Europe's most
exciting property markets and has bought €200m (£136m) of
property in Germany in just 12 months. Among the other
target markets are Spain , secondary cities in France ,
northern Italy and the Baltic States .
Tiger
Investments
In spite of
the name, Tiger European interests are all about investment
rather than development, underlining its ability to quickly
respond to market conditions and preserve long-term
consistent returns for its shareholders.
In Europe,
well-located assets with strong capital growth prospects are
the holy grail, while in the mature UK market, the focus is
on development – namely transforming Haymarket, one of
Edinburgh 's last undeveloped city sites, into a prime
retail and leisure hub.
‘We first
started to look at Europe three years ago,' says O'Flynn.
‘We liked the look of the Czech Republic to begin with but
we were concerned about long-term prospects.
‘Whether
we're investing or developing, we work on the basis that if
a market doesn't stack up for the long term, you shouldn't
be in it at all.'
As the
chatter pauses momentarily, it dawns on me that we are
virtually the only table left in the restaurant and that the
self-confessed interview-shy O'Flynn has talked for hours.
O'Flynn the
property group chairman has been more than candid, but
gaining true insight into O'Flynn the man has been more of a
challenge.
But, as he
argues well, his love of horse-racing or Manchester United
bears little relevance on his role in property. He lives and
breathes for his company. The rest is mere detail. |
