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

Calls grow for Aughinish exemption

Cork, Shannon airports drop share to Dublin

Lawyer fails in bid to seek anonymous blogger's identity from Facebook

Carbery Group reports rise in turnover


Today's Stories

High-speed broadband key to reviving rural areas

Stock market jitters set to be eased after hard times

28,500 new homes to be completed next year

Lifestyle

New father’s life ‘changed forever’ after he was run over by surgeon

The biggest cancer killer will take your breath away

Hopefully she had an idea...

Power of the press: Meryl Streep and Tom Hanks discuss 'The Post'

More From The Irish Examiner