House building company, Glenveagh, has announced plans to raise more than €200 million on the stock markets in Dublin and London to fund future land acquisitions.
In a statement this evening, Glenveagh said it will use the money it raises to buy land, and to develop new and existing sites in the Greater Dublin Area, and in Cork, Limerick and Galway.
Glenveagh said Ireland's economy continues to perform strongly, "with significant unsatisfied demand for housing", adding that the residential market remains chronically under-supplied.
Glenveagh's CEO Justin Bickle said the company has made significant progress since its IPO last year, and it is ahead of schedule in meeting its IPO targets of acquiring land for residential building, constructing and selling houses and apartments.
"The Irish economy continues to perform strongly, with significant unsatisfied demand for housing. Despite that demand, the residential market remains chronically under-supplied. Glenveagh is constructing homes quickly and efficiently and is benefiting from being a listed PLC."
"We have a large and robust pipeline of highly accretive land acquisition opportunities which we will action on completion of this fundraising," Mr Bickle said. "Buying the right land for building, in the right locations, with appropriate site and transport infrastructure and at attractive margins, is accretive for shareholders, and consistent with Glenveagh's overall business plan and strategy."
Separately, private equity firm, Oaktree Capital Management, intends to sell half of its 16% shareholding in Glenveagh. The secondary sale is not conditional on the completion of the capital raise.
