Business Irish

Monday 20 November 2017

Cairn buys in dockland, but Nama retains lion's share

Dublin docklands
Dublin docklands

Donal O'Donovan and Paul O'Donoghue

Nama says it is on course to develop around 2,000 residential units and a huge swath of high-end offices in Dublin's docklands area.

Nama and receivers appointed by the agency control about 75pc of the 22 hectares of development land in the area, which is between Dublin city centre and the sea front.

The State-controlled bad bank says building is already underway that will deliver about 1.3 million square feet of mainly high-end commercial offices and 1,000 apartments.

In addition planning permission has been obtained or has been sought for another 1.2 million square feet of commercial development space, including office, hotel and 970-bed student accommodation in addition to 226 residential units, Nama said.

While Nama is the biggest property player in the docks area, private sector developers are also active, including buying some sites from the agency.

Stock market listed homebuilder Cairn Homes said yesterday that it is acquiring a site in Hanover Quay in the Dublin Docklands for €18m.

The company said the acquisition is expected to be complete in early February.

It said the site will allow for the development of "in excess of 100 apartments".

The site has planning permission, which means construction can begin this year.

It has been acquired from a consortium of NAMA, Bennett Construction and Oaktree.

Cairn's chief executive Michael Stanley said that the Hanover Quay site represents a "key achievement for the company".

"[It] provides Cairn with the opportunity to provide much-needed quality homes in the Dublin business centre and 'Silicon Docks' area of the city, which has a particularly acute demand for new homes," he said.

Cairn Homes raised €400m at its stock market debut in June last year and an additional €200m in fresh equity and debt last month.

Shares have risen from €1.05 each in June to close at €1.20 each yesterday.

Irish Independent

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