Builders materials and DIY group Heiton Holdings has raised more than #20 million following the sale of a prime development site at Ringsend in Dublin and a placing of new shares with institutional investors.

The group is realising £10.8 million (#13.6 million) after selling the one-acre site at Ringsend to Green Property. As well as taking advantage of the buoyant property market to make a financial killing on the Ringsend site, Heiton has also raised a further #7 million after a share placing. Heiton placed 1.85 million shares through Davy Stockbrokers with institutional investors at #3.80 each, a marginal discount to the price in the market.

Between the sale of the Ringsend site and the share placing, Heiton has raised more than #20 million and in the process knocked about 40 per cent off its debt.

Company broker Davy had previously forecast that debt at the end of April would be around #48 million. The cash raised will cut the group's debt/ equity ratio to little more than 25 per cent.

Raising so much cash will inevitably lead to speculation that Heiton is about to go on the acquisition trail. All that chief executive Mr Leo Martin said, however, was that the funds would be used for acquisitions and organic investments over the coming months.

Following the site sale to Green, Heiton will transfer the builders merchant operations across the Liffey to a new facility in the East Wall area. All staff employed at Ringsend will be relocated to the new site or transferred to another Heiton branch.

Green Property is to build a 120,000 sq ft office block on the former Heiton site in Ringsend.

Green managing director Mr Stephen Vernon said: "We are particularly delighted with this acquisition as it fits in with our market-led approach to property development in the Dublin area."