Tuesday 26 September 2017

Dublin builder planning 4,000 homes with €50m bond fund

The Nasdaq exchange in the Danish capital, Copenhagen
The Nasdaq exchange in the Danish capital, Copenhagen
A Victoria Homes housing development in the Dublin suburb of Templeogue
John Mulligan

John Mulligan

A UK company connected to Dublin-based property developer Victoria Homes is planning to raise up to €50m by issuing bonds to fund the construction of thousands of homes around the capital.

UK firm Victoria Asset Management has indicated that it has been authorised to issue up to €50m worth of bonds on Copenhagen's Nasdaq First North Exchange that will pay a 6.5pc coupon, or interest rate. The bonds will mature in 2023.

It has said the funding will help to construct 4,000 dwellings around Dublin.

Victoria Asset Management is controlled by Peter Mulligan, who previously worked with Morgan Stanley. Most recently, he was a director of Rationale Asset Management, a property investment and management firm with offices in Dublin and London.

The other main director of Victoria Asset Management is Jonathan Meier, who is also a director at a company called Sculpture Real Estate. Sculpture is currently working on a £100m scheme in the UK with Aberdeen Asset Management.

Victoria Asset Management It said that it will work in conjunction with Victoria Homes, which it says has "strategically created a robust pipeline of development sites over the past five years".

The sites are in locations in and around the capital, in areas including Foxrock, Ballsbridge, Mount Merrion, Killiney, Stillorgan, Portmarnock, Malahide, Enniskerry, Rathfarnham and a number of others areas.

In accounts recently filed for Victoria Asset Management, which was only incorporated last April, the company also confirmed it was raising debt via the bonds to fund the development of the homes, initially in the Dublin area.

Two directors at Victoria Homes, Derek Byrne and Danny Whelan, were uncontactable yesterday. Calls to Victoria Asset Management went unanswered.

Victoria Homes' two shareholders include Limerick-based firm PG Homes, which is in turn partly controlled by another Limerick firm called Tricrest. But the majority of shares in Victoria Homes are now owned by a company based in Belize, Central America, called Victoria Holdings.

It has also emerged that Victoria Homes has secured financing from funds controlled by a Switzerland-based firm called Decalia.

Based in Geneva, Decalia Asset Management manages and advises private and institutional client assets, as well as high-added-value investment funds.

"In order to play the trend towards disintermediation in the banking sector in Europe, Decalia has partnered with British corporate finance specialist Three Hills Capital Partners to launch 'Three Hills Decalia', a private debt fund," it notes on its website.

It adds: "Decalia has also developed a non-banking mortgage credit product allowing [it] to take advantage of the recovery in Ireland's real estate market, in collaboration with a local partner."

Victoria Homes has been lodging a number of planning applications in recent years for developments around Dublin.

The company applied for planning permission to construct 14 homes at a site in Swords, Co Dublin earlier this year, and to build 17 homes at Mulhuddart. It has also applied for permission to build 31 homes in Rathcoole, Co Dublin. This week, it was refused permission for a development of 125 three-storey houses in Carrickmines, in south Dublin.

Irish Independent

Also in Business