Housebuilder Glenveagh Properties has completed the acquisition of eleven development sites that it says have the potential to support more than 1,300 units.
Nine of the sites were identified as part of a portfolio of twelve sites called “Project Kells”. The acquisition of the remaining three sites in this portfolio is expected to be completed in due course upon the fulfilment of various legal formalities.
It’s understood Glenveagh were seeking the 12 sites in the Project Kells portfolio from a third party for €44.4 million.
In addition to the nine Project Kells sites, the company has acquired two sites in Balbriggan, Co Dublin. According to analyst Davy, the two sites were acquired at a cost of about €22 million and should deliver just under 450 units in total.
Glenveagh said on Friday that, subject to the requisite planning permissions being obtained, these eleven sites so far have the potential to support up to 1,319 units.
The sites are in addition to fourteen conditionally acquired sites and another site at Ballyboughal, Co Dublin. The site at Ballyboughal was acquired as part of the acquisition of Braddington Developments Limited.
Glenveagh said the fifteen sites have the potential to support 2,008 units.
To date, the company has invested approximately €83 million in cash (net of costs and expenses) on the acquisition of sites.
After the Balbriggan and the other Project Kells transactions, Glenveagh should still have about €420 million in cash for further land acquisitions.
The addition of these sites increases the size of Glenveagh’s landbank from 3,073 plots at its IPO to over 3,500 plots.
Glenveagh chief executive Justin Bickle said the company hoped to report “more progress” in due course.
“We have been very busy since our listing last month on the London and Irish Stock Exchanges, developing our various plans, progressing discussions towards the acquisition of various sites and informing the local market about our ambitions to deliver houses and apartments for third parties through Glenveagh Living,” he said.
“Alongside this, we have been busy building out the company’s corporate infrastructure, hiring new staff, integrating Bridgedale’s operations and re-branding them as Glenveagh Homes.
“We are delighted with the positive reaction we have received in the market so far and look forward to reporting more progress in due course.”
Davy said it expected Glenveagh, which raised €550 million from its initial public offering (IPO) last month, to “deliver rapid growth and impressive financial returns”.
The stockbroker said Glenveagh was part of a small group of housebuilders who have the financial and operational capacity to deliver new homes at scale.
Davy said Glenveagh was “a well-capitalised and proven housebuilder that is coming to the market at the right time.”
“In the short term, the company can scale rapidly to deliver 1,000 units by 2020, confirming it as a key benefactor of the rapidly-recovering Irish residential market,” Davy analysts Colin Sheridan and Michael Mitchell said.
The sites Glenveagh have acquired are:
Proby Square, Off Carysfort Avenue, Blackrock, Co Dublin
Nine sites from the 12-site Project Kells portfolio
20 Shrewsbury Road, Ballsbridge, Dublin
Burkeen Road, Keatingstown, Co Wicklow
Church Lane, Greystones, Co Wicklow
Old Connaught Avenue, Rathmichael, Co Dublin
Great Connell Abbey Stud, Newbridge, Co Kildare
Quinns Cross, Mungret, Co Limerick
Parson Street, Maynooth, Co Kildare
Castleredmond, Midleton, Co Cork
Two adjoining sites at Naul Road, Balbriggan, Co Dublin
