A housebuilder is hoping to make its mark on the buoyant North-East market with the £8.75m acquisition of a Sedgefield company.

McInerney Holdings has announced its acquisition of Alexander Developments (North East) with immediate effect.

The move is a strategic one by McInerney Holdings to expand its UK operation following the success of its UK brands Hargreaves Homes, Charlton Homes and Space.

McInerney's UK managing director, Pat O'Flynn, said: "We have established a very strong presence in the North-West and we are building on this with organic growth into Yorkshire, Derbyshire and Cheshire.

"The Alexander acquisition will give us immediate entry into the extremely buoyant residential market in the North-East with a quality product and well-respected brand, enabling us to drive further growth."

Alexander Developments was founded in the mid-1980s by chief executive Alex Chaytor and has a reputation as an independent housebuilder in the North-East.

The company serves an area from Newcastle and Sunderland to Teesside, incorporating County Durham, and has a population catchment of more than two million.

Alexander's speciality has been building high-value homes in commuter belt locations.

Mr O'Flynn said: "The area in which Alexander operates experienced the greatest percentage change in house prices over the past year with buyers in the first quarter of 2004 paying an average of 46 per cent more than those who bought during the same period in the previous year.

"Alexander's product complements our existing brand portfolio while opening up a whole new geography."

Two of Alexander's current developments include Haughton Manor and Victoria Mews, in Darlington, Brockwell Manor, in Easington, County Durham, and Horden Dene, in Horden.

McInerney is planning to expand its UK operations to a size similar to the company's Irish home building division.

Barry O'Conner, managing director of McInerney Holdings, said: "McInerney now has a strong regional presence in the North of England and this acquisition along with continued organic growth activities provides a strong platform for the group to take best advantage of a buoyant housing market demand in the UK."

McInerney Holdings is one of Ireland's largest development companies, with four divisions in Ireland, Spain and the UK, and is listed on the Dublin and London stock exchanges.