Glenveagh house builder plans to raise €550m

Glenveagh Properties, which plans to become only the country’s second listed housebuilder after Cairn Homes, said it aims in time to achieve a gross margin of 20% on operations, writes Eamon Quinn.

The company, which is chaired by former Nama senior executive John Mulcahy, aims to sell €550m in shares through a placing next week.

It brings together lands in the Dublin area owned by US fund Oaktree Capital with builder Bridgedale, which was founded by Stephen Garvey almost 15 years ago.

The firm said it will use the proceeds from the sale to buy Bridgedale for €2.6m in shares and to purchase “conditionally acquired sites”.

The rest of the funds will be used to help purchase additional sites.

The conditionally acquired lands involve 27 sites, 14 of which will be purchased from Oaktree for over €131m, which, it said, could deliver 3,020 homes.

The payment includes a €21m cash payment to buy out a sales interest held by Sisk in a development.

Some 12 sites comprise a cash payment of €44.4m linked to a Project Kells portfolio, and one further site which is owned by Mr Garvey and a development company.

It said it has also identified over €1bn in potential sites it could acquire over the next 12 months, including in west and north Dublin.

Three managers — Mr Mulcahy, Mr Garvey and chief executive Justin Bickle — will benefit from a share-based incentive scheme.

It said aims to “maintain consistent and disciplined focus on returns and margins, targeting a return on capital employed of at least 25% (from 2021 onwards) on a group-wide basis and...a gross margin of at least 20% once the company achieves scale”.

This article first appeared in the Irish Examiner


More in this Section

UK financial watchdog fines Merrill Lynch for failing to report transactions

Manager defrauded Bombardier of €774,000 to buy Harley-Davidsons and US holidays

Research shows more Irish companies offering perks to keep employees

Henkel Ireland announces 40 'highly skilled' jobs at its new 3D printing operation in Dublin


Today's Stories

RBS pegs its bill for claims by SMEs in Britain to £400m

Room for dollar and sterling recoveries to gain real momentum

Chinese presence lifts Philips sales

Markets won’t ‘panic’ over Catalonia

Lifestyle

Delving into the Irish tradition of Jack O'Laterns

Making Cents: How to call the scammers’ bluff

Why Hollywood gave superhero Thor a makeover

A helicopter put a piano on the 150-foot roof of Blarney Castle and other stories from the Cork Jazz Festival archives

More From The Irish Examiner