Wednesday 18 July 2018

Glenveagh acquires portfolios with potential for over 2,000 residential units

Glenveagh CEO Justin Bickle
Glenveagh CEO Justin Bickle
Ellie Donnelly

Ellie Donnelly

Housebuilder Glenveagh Properties said it has acquired two "substantial" land portfolios for a combined price of €106m, which it says are capable of delivering an additional 2,235 residential units.

The two portfolios include development sites in Tallaght and Donabate in Co. Dublin, Bray in Co. Wicklow, Dunboyne and Stamullen in Co. Meath and Galway city.

The announcement was made as part of Glenveagh’s first set of results since it listed on the Irish and London Stock Exchanges on 13 October last.

The results cover the period from the company’s incorporation last August to the end of December.

During the five month period the company generated revenue of €1.4m, recording a gross profit of €524,000 in the five month period.

The business made a pre-exceptional loss of €3.3m, which it said reflected its focus on successfully completing Target Investment Opportunities ICAV’s owed units and an investment in overheads.

Commenting on the results, Glenveagh CEO and co-founder Justin Bickle said he was "delighted" with the company’s progress.

"We have smartly invested nearly €300m of the cash proceeds in very attractive multi-year land sites," Mr Bickle said.

"The current market conditions in Ireland are among the most attractive I have seen globally in my career to-date."

The company also confirmed that its home building division (Glenveagh Homes) is already building on seven sites and will have 700 units under construction this year, with a separate development pipeline of over 1,200 units being developed for rental communities (through Glenveagh Living division).

The business, which was created from a combination of US distressed debt investor Oaktree's development sites - scooped up during the economic crash - and the operations of Maynooth-based builder Bridgedale, has invested almost €300m in land since the IPO last October and its land bank is now over 7,340 units – double the size at IPO.

In January the company announced that it had exchanged contracts to acquire a development site Citywest Road, Dublin 24, and also signed an unconditional legal contract to acquire a major site in Hollystown, Dublin 15, which it said would deliver almost 400 residential units between the two sites.

Glenveagh listed on the stock exchange last October, raising €550m to fund land deals and housebuilding.

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