Monday 23 September 2019

Glenveagh puts up 'sold' signs on its 2019 stock

Glenveagh said its target to build and sell 725 houses and apartments is close to completion. Stock photo
Glenveagh said its target to build and sell 725 houses and apartments is close to completion. Stock photo
Ellie Donnelly

Ellie Donnelly

Glenveagh, one of the country's biggest housebuilders, has effectively sold out its 2019 stock less than halfway through the year.

Glenveagh said its target to build and sell 725 houses and apartments is close to completion.

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The vast majority already are sold, signed or reserved with the exception of a 90-unit apartment scheme at Herbert Hill, Dundrum, in south County Dublin.

Glenveagh expects to sell this development to a single investor - tipped to be German fund Patrizia - in the second half of this year.

Glenveagh also has acquired two sites for €24m capable of hosting 375 homes.

The sites at Howth, Co Dublin, and Bray, Co Wicklow, are composed of 200 units and 175 units respectively.

The land acquired in Dublin is a portion of the Howth Castle estate recently purchased by Tetrarch Capital.

Glenveagh paid around €15m for this 2.7-acre site, which has zoning for residential development.

In a trading update ahead of its annual general meeting, Glenveagh said its year-to-date performance has been in line with the board's expectations and "consistent with its strategy".

The group has seen strong private buyer interest in its starter-home schemes this year, in a market where supply continues to lag well behind demand. Co-founder and CEO Justin Bickle said: "Glenveagh continued to perform well during the period and has delivered strong progress towards its 2019 targets.

"Our objective was to secure signings and reservations in the first half of the year with the majority of closings occurring in the second half."

He added: "The strong reservation rate in the year to date demonstrates we are delivering product where it is most needed and has been welcomed by private buyers and institutional investors."

The group is currently building houses and apartments on 16 sites.

Glenveagh emerged as a housebuilder from US fund Oaktree's stock of Irish property assets bought after the crash. It focuses mainly on the greater Dublin area, Cork, Limerick and Galway.

Glenveagh said it is confident that full-year results will meet its expectations.

Davy Stockbrokers' Colin Sheridan said: "Conviction in our 'outperform' rating has been reinforced by [the] announcement."

Shares were up 1.9pc.

Irish Independent

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