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Glenveagh says it won't return for more capital after raising €200m-plus

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Glenveagh co-founders Justin Bickle, CEO; John Mulcahy, chairman; and Stephen Garvey, COO. Photo: Colm Mahady/Fennells

Glenveagh co-founders Justin Bickle, CEO; John Mulcahy, chairman; and Stephen Garvey, COO. Photo: Colm Mahady/Fennells

Glenveagh co-founders Justin Bickle, CEO; John Mulcahy, chairman; and Stephen Garvey, COO. Photo: Colm Mahady/Fennells

Listed housebuilder Glenveagh Properties does not expect to return to the market for more cash after shareholders approved a fundraising of more than €200m.

"We have our capital now," CEO Justin Bickle told reporters after an extraordinary general meeting in Dublin yesterday. He said proceeds from future property sales would be used to fund future land purchases.

"When we raised the money we guided the investors that we believed we could get this new capital amount deployed in, say, 6-9 months. The point is that our business becomes very cash generative quite shortly which gives us the ability to buy more land if we need it later.

"This is our last capital raise," Mr Bickle said.

Announcing its plans to raise the money last month, Glenveagh said it had €64.5m of pipeline sites in exclusive negotiations, and more than €360m in active negotiations.

Since then it has announced the purchase of a substantial land bank at Tyrrelstown in West Dublin.

It said it also had around €80m of proceeds left over from its IPO which saw it raise €500m in floating last October.

Stephen Garvey, the company's chief operating officer, said the company believed the land market was "very strong".

"We're seeing across the board various sellers, you're seeing private sellers, you're seeing private equity, you're seeing Nama. There's numerous sellers in the market today.

"We've a very strong pipeline. We've identified assets that we're presently in negotiations with.

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"We think the land market is very strong in the sense that for us there's a lot of available land out there."

Yesterday a purchasing managers' index for the construction sector published by Ulster Bank said that some companies were reporting building material shortages on foot of high levels of activity in the sector.

"Material shortages contributed to another sharp increase in input prices during July, with higher costs for insulation, steel and transport mentioned. There were also reports of higher staff costs," Ulster Bank said.

Mr Garvey said the construction cost of a house typically makes up 50-60pc of the overall cost, depending on the property.


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