Glenveagh Properties is Ahead of Schedule
Glenveagh Properties, a leading Irish homebuilder listed on Euronext Dublin and the London Stock Exchange, has reported revenue of €1.3 million for the first half ended 30 June 2018, relating primarily to the closing of six 2 & 3-bed starter homes in the Greater Dublin Area, as well as rental income from a number of its sites.
Sales activity has been strong with 278 units sold, signed or reserved from 1 January through to 31 August. The group is currently selling from seven sites, which will rise to eight sites during the remainder of 2018.
Glenveagh Properties has now deployed €479 million of capital in land assets since last October’s IPO. The group’s landbank is now 11,370 units, 31% of which are shovel-ready with 98% zoned residential..
Glenveagh Properties continues to be ahead of schedule in delivering its key IPO targets, namely acquiring land for residential building, constructing and selling houses and apartments, and scaling its business as a PLC.
Subsequent to period end, the group completed a Capital Raise for gross proceeds of approximately €213 million (approximately €205 million net of commissions, fees and expenses) from the issue of 185,291,388 new ordinary shares. Glenveagh has about €200 million of cash available to deploy on further land acquisitions.
Glenveagh’s Co-Founder and CEO Justin Bickle commented: “The past 12 months have been very productive as we completed our IPO and then set out on our mission to create a volume homebuilder for the Irish market. We have carefully assembled a multi-year land bank for building, got off to a strong start in opening our sites and constructing houses and apartments, and grown our operations consistent with our business plan and longer-term financial targets. As a result of our recent capital raising we now have a stronger balance sheet to complement a market leading construction offering and are focused on those segments in Irish residential: starter homes, PRS and mixed-tenure, which we believe will result in long term sustainable returns for our shareholders.”
The group’s market backdrop remains very favourable with significant demand for housing, particularly starter homes, clearly evident across its selling sites, while the supply side remains fragmented and sub-scale, with other market participants having limited access to equity or appropriately priced debt.
Over the next six months, Glenveagh’s goals will be to:
*·Substantially deploy the proceeds from our recent capital raise on targeted land acquisitions
* Continue to open new construction sites further de-risking the Homes volume targets
* Continue to invest in our building operations, consistent with a volume homebuilder
* Continue to evaluate monetisation routes for Glenveagh Living’s PRS portfolio and prioritise its mixed-tenure opportunity.