Cairn looks to raise up to €400m from flotation

Irish housebuilder Cairn Homes is looking to raise up to €400m as part of its flotation on the London Stock Exchange.

The company, established last year by chief executive Michael Stanley and Scottish accountant Alan McIntosh, will issue shares at €1 per share on June 10 in a bid to raise between €350m and €400m, it said in a statement yesterday.

Cairn’s chairman is former KBC Bank Ireland chief executive John Reynolds.

With five sites already acquired and a strong pipeline of further development opportunities identified, the company, with headquarters in Dublin, believes there is significant opportunity in the recovering Irish market.

“The Irish economic backdrop continues to improve underlined by the fact that Ireland has the joint highest GDP growth forecast in the EU,” said Mr Reynolds.

“These strong macro-economic conditions, together with a population that is forecast to increase to five million by 2031, will underpin a strong demand for homes over the coming years. We believe this is a unique opportunity for our company, our customers, potential investors and the sector,” he said.

Five sites have been acquired with an estimated gross development value of €366m. The first sales on its 50-acre, North Dublin Parkside site are expected this month with construction ongoing at its site in Killiney.

Construction will commence in Navan in the fourth quarter and at another site, in Galway, by mid-2016.

Cairn is in exclusive discussions to acquire a further nine sites with an estimated development value of €1.8bn from about 3,880 units.

The housebuilder’s strategy will focus on capitalising on the recovering economy allied to a substantial under-supply of housing, particular in Dublin and its surrounds; Cork; Galway and other urban centres.

Fewer than 3,300 new build completions were delivered in Dublin in 2014 against a medium-term demand of 8,000 to 10,000 per annum.