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Good day and a warm welcome to our weekly collection of business, financial, and economic tidbits from Ireland.
Contents
- 1 Revenue’s Crackdown on Cash-in-Hand Work
- 2 Increased Compliance Efforts
- 3 Frascati Shopping Centre on the Market
- 4 Upcoming Sale
- 5 Meta’s Former Docklands Office Acquired
- 6 A Noteworthy Investment
- 7 Danish Interest in Galco Steel
- 8 Strategic Expansion
- 9 Powerscourt Distillery’s New Chapter
- 10 Navigating Industry Challenges
Revenue’s Crackdown on Cash-in-Hand Work
The Irish Revenue has been turning the spotlight on the construction sector, driving instructors, couriers, and car washes in a bid to clamp down on cash-in-hand businesses and sham self-employment arrangements. This new direction follows the Supreme Court’s Karshan judgment, which determined that Domino’s Pizza delivery drivers were indeed employees and not contractors.
Increased Compliance Efforts
Since the end of the Covid-19 pandemic, the Revenue has deployed cutting-edge software, sifting through tax data to uncover inconsistencies. Their business division, responsible for overseeing companies with up to €8.8 million in turnover, typically focuses on employment-related share schemes, R&D tax credits, and more. However, this year, they’ve pivoted towards the shadow economy.
The division executed 65,317 business interventions in 2024. Amazingly, they achieved a similar number—65,163—by October of the following year. They’ve opened a settlement window for companies misclassifying employees, allowing them a chance to amend errors and address back taxes, albeit under a deadline.
Frascati Shopping Centre on the Market
The Frascati shopping centre in Blackrock, Dublin, is preparing for a sale. This mall, managed by US investor Invesco, measures over 20,000 square meters, housing notable tenants such as Aldi, Boots, Marks & Spencer, and others. Invesco acquired the centre in 2015 for €68 million, redeveloping it alongside Burlington Real Estate.
Upcoming Sale
Cushman & Wakefield have been engaged to manage the sale, expected to commence in March. Speculations suggest the price could range between €70 million and €100 million, contrasting the unsuccessful €100 million attempt last year, following partial debt satisfaction with Bank of Ireland. This property is one of several retail assets likely to be sold in early 2026.
Meta’s Former Docklands Office Acquired
Camgill Conway, a Canadian-Irish real estate mogul, has purchased the Beckett Building in Dublin’s north docklands. The building, once occupied by Meta (Facebook), was acquired for approximately €25 million. The opportunity arose amidst a 75% depreciation since its €101 million valuation by former owner KB Kookmin Bank.
A Noteworthy Investment
The Beckett Building found itself back on the market in 2024 after an aborted agreement with a storage company. Located a brisk walk from the 3Arena, this building offers significant potential for development in Dublin’s burgeoning docklands. Camgill Conway, active since 2015, has invested over €200 million in commercial real estate, highlighting a strategic focus on dynamic areas.
Danish Interest in Galco Steel
Galco Steel, the largest metal galvanising company in Ireland, is nearing an acquisition by Dot Nordic, a Danish steel coating giant backed by the Lego family. Galco has two galvanising plants in Dublin and various facilities in Waterford, Cork, Galway, and Derry, employing over 300 individuals.
Strategic Expansion
Dot Nordic, owned by Kirk Kapital, seeks to incorporate Galco into its fold. Kirk Kapital, stemming from the progenitors of Lego, actively expands its holdings in construction and electronics. Speculation surrounds whether existing Galco shareholders will retain partial ownership.
Powerscourt Distillery’s New Chapter
In an uplifting twist, Powerscourt Distillery has been rescued by U.S.-based pharmaceutical magnate Bala Venkataraman. Acquiring the distillery through Altiva Management Inc, Venkataraman’s €8 million investment not only extricates the distillery from receivership but also invigorates its future.
The distillery stumbled last year amidst a global spirits surplus. However, the future appears promising with expected market recovery. Current trends show potential revitalisation in Irish whiskey exports, with green shoots visible in the American market. Powerscourt, established by Gerry Ginty and Ashley Gardiner, now finds itself poised for a promising rebound.
As we wrap up, these developments reflect a dynamic Irish business landscape, navigating challenges and embracing opportunities. Stay tuned for more updates!
