Cairn looking at sites worth €120m

Newly-floated Irish housebuilder Cairn Homes has said it is considering acquiring 11 new sites with a combined value of around €120m as part of a strong pipeline of expansion opportunities.

“Following on from our very successful initial public offering, Cairn Homes has progressed the acquisition, planning and development of premium sites in Dublin, Galway and Meath.

“The availability of prime development lands continues to be a positive for Cairn Homes and the company is confident in its pipeline to deliver quality homes in a market where there is an acute shortage of supply,” chief executive Michael Stanley said yesterday.

Cairn floated on the London Stock Exchange in June, raising gross proceeds of €440m from the move.

During the first half of this year, the company acquired nine development sites, at a combined cost of €130m, and said yesterday that developments are progressing well.

It also said that it has a strong strategic pipeline in target areas.

The due diligence being carried out on the 11 sites covers an area with potential for around 1,600 new builds.

The company yesterday reported revenues of €51,000 for the first half of 2015 and a loss before tax of just over €1m.

Cairn cited rising employment, improving GDP forecasts, a favourable macro-economic backdrop and a strengthening consumer economy for its upbeat outlook.

“A significant number of new site acquisition opportunities are expected to come to the market over the coming months, following a quieter summer,” it said.