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Glenveagh buys land in Cork capable of delivering 500 homes

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BLOOMBERG NEWS

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One of the country's biggest stock market listed builders Glenveagh has purchased 43 acres of land in Douglas, Cork for €25m.

The site, acquired from the National Asset Management Agency ("NAMA"), is capable of delivering approximately 500 units of housing.

The group’s total landbank in Cork now has capacity for approximately 2,000 units.

In a trading update today the company said it expects to deliver revenue of €84m in respect of last year.

The group said sales activity has been "strong" with 275 completed sales during 2018, 10pc ahead of guidance.

Unit average selling price at the Dublin and London-listed company was €287,000, which it said is reflective of sales mix and the "strong" performance from the group’s starter-home schemes.

This year the average selling price is expected to be between €340,000 and €370,000.

Glenveagh’s 'Homes’s' landbank comprises 10,000 units across 42 sites in the Greater Dublin Area, Cork,Galway and Limerick, while its 'Living’s' landbank comprises 1,850 units across four sites in Central Dublin and in Galway.

Construction has commenced on 14 sites for 'Homes' with approximately 900 units under construction, while the group said all sites necessary to deliver the group’s units guidance of 725 units for 2019 are now open.

Further starter-home schemes (Ledwill Park, Knightsgate and Semplewoods) will commence sales in the first half of this year, the group added.

Looking forward, Glenveagh said the land buying opportunity "remains attractive", it added that it has "substantially" de-risked its 2019 construction targets, with costs now largely fixed for 2019.

"The fundamentals of our sector remain strong with continued chronic under-supply of housing in Ireland (both private and public) and a dearth of scale homebuilders," Justin Bickle, Glenveagh’s co-founder and CEO, said.

"We have cash on hand, a strong balance sheet, and market leading construction capability. We will continue to deliver the right type of housing to the starter-home market based on attractive residential locations, quality built product and value for money."

Last August Glenveagh approved a fundraising of more than €213m.

Online Editors