Cairn Homes buys two south Dublin sites for housing plan
Cairn Homes, the Irish house-builder, has agreed a deal with real estate firm Hines Ireland to purchase two sites in Cherrywood, Dublin, for €21.5m.
As part of the deal Cairn also has the option to buy a third site for €9.2m on receipt of planning permission.
The deal will see the construction of over 300 homes on the Cherrywood site, in line with the site's masterplan.
Michael Stanley, the chief executive of Cairn Homes, said the firm was excited to acquire the south Dublin sites.
"The visionary masterplan developed by Hines, in conjunction with Dun Laoghaire-Rathdown County Council, will offer our future customers many benefits," he said.
Mr Stanley said the Hines plan included "three landscaped parks, a wide range of leisure facilities, a retail led town centre, primary and secondary schools and an unrivalled transport infrastructure, making Cherrywood a truly exceptional place to live".
Goodbody Stockbrokers analyst Colm Foley said there is still room for Cairn to continue investing after spending €378m for its share in Dublin-based loan portfolio Project Clear.
"The €30.7m acquisition by Cairn probably accounts for one-third of our estimate of its outstanding investment capacity post the recent Project Clear transaction," Mr Foley said.
"Whilst the deal probably equates to just a 2pc addition to its potential landbank, we would note that Cairn is the first homebuilder chosen by Hines for its Cherrywood development, providing a strong vote of confidence on its housebuilding credentials."
Hines Ireland acquired Cherrywood in November 2014 and brought forward an integrated masterplan, which includes the construction of a new retail-led town centre as well as 3,800 apartments and houses.