Cairn Homes and Lone Star purchase Dublin residential portfolio for €503m
Published 07/12/2015 | 08:34
Cairn Homes, the Irish housebuilding company, has said that it and Lone Star, the US equity firm, have made a successful €503m bid for Project Clear, a residential property loans portfolio.
The loans portfolio was purchased from Ulster Bank and the par value of the loans being acquired is around €2bn attached to 1,694 acres, which includes 31 residential development sites.
Cairn Homes will pay €378m for its share in the portfolio.
Over 90pc of the portfolio lands are located in Dublin and the surrounding commuter belt, representing around 20pc of the available residentially zoned land in the Greater Dublin Area
Cairn's share in the portfolio is said to be in the region of 75pc and it gives the company the ability to build in excess of 14,000 new homes with a development value of over €2bn.
The deal is expected to be completed before the end of the year.
Commenting on today's announcement, Cairn chief executive, Michael Stanley, said: "We are delighted to have entered into an agreement with Ulster Bank for the Project Clear loan portfolio, one of our key strategic targets.
"I would like to congratulate and thank Lone Star for also recognising this truly unique opportunity. This transaction will unlock the most significant land bank available in Ireland. Cairn's share of the portfolio will provide the opportunity to build over 14,000 new homes, with an expected net development value of in excess of €2bn," Mr Stanley said.