Cairn Homes to raise €50m in share sale
Cairn Homes could raise up to €50 million to help fund bids for prime development sites in Dublin, including land being sold by broadcaster RTÉ at its Donnybrook complex. The property group has announced plans to place up to 33.7 million new ordinary shares in the company with institutional investors.
In a stock-market announcement, Cairn said it was “considering a number of site purchases” to enhance its existing land bank. It currently has a portfolio of land that could deliver about 12,100 homes, with about 60% of them aimed at first-time buyers.
Cairn is believed to lining up bids for a number of prime sites, including RTÉ’s land at Montrose. In March, the State broadcaster announced plans to sell 8.64 acres of land with Savills guiding €75 million for the site.
The group is also expected to enhance senior credit facilities with its bankers and is also reported to be selling some of its smaller residential sites as a job lot for about €30 million.
Cairn also gave an update on current trading after European markets closed. The company achieved net revenues of €23.5 million from January 1st to May 12th and expects to achieve its sales target for 2017 of between 375 and 400 new units.
