Monday 18 December 2017

Cairn says its land bank could supply 11,000 new homes

Cairn, which is building Parkside, above, raised €642m in 2015
Cairn, which is building Parkside, above, raised €642m in 2015
Michael Cogley

Michael Cogley

House builder Cairn Homes has amassed enough land to build 11,000 homes after raising €642m over the course of 2015.

The company floated on the London Stock Exchange last year and followed up that deal with further equity and debt raisings.

It posted a net loss €5.5m before exceptional items in the 13 months to the end of December, its first year in operation, according to preliminary results published yesterday.

Operations over the year focused on acquisitions, including Ulster Bank's Project Clear, a portfolio of loans linked to lands that account for a fifth of zoned Dublin residential sites.

"Following the successful acquisition of the Project Clear loans portfolio and the nine other individual site acquisitions since our IPO, the company now has access to an exceptionally well located and well-priced core land bank of in excess of 11,000 units," Cairn chief executive Michael Stanley said.

Cairn expects construction to begin at its Rathgar site in South Dublin in the second quarter of this year.

"We are currently building in Parkside, North Dublin, and Killiney, South Dublin," Mr Stanley said.

"We will commence construction on five further schemes within the next 12 months and look forward to making a meaningful contribution to the much needed supply of quality new homes in Ireland over the coming years," he said.

After the launch of the company's first site at Parkside, Dublin 13, in September, 52 houses are now sale agreed, with Cairn reporting positive feedback from customers.

The company is now staffing up on the construction side as it looks to ramp up output.

The homebuilder has continued to buy so far this year, acquiring a site on Hanover Quay in Dublin's docklands area as well as striking a deal with Hines for developments in Cherrywood.

That deal will see the construction of over 300 homes on the Cherrywood site, in line with the site's masterplan.

Cairn's 2015 profits were hit by exceptional charges of €2.9m related to the acquisition of Cairn Homes Holdings Limited and a further €29.1m non-cash fair value once-off accounting charge relating to the Founder Share scheme.

The company's revenue was €3.7m in the year.

Irish Independent

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