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Builder sells €49m of homes in Lucan

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Shackleton Park development

Shackleton Park development

Shackleton Park development

Builder Cairn Homes has sold 150 homes in Lucan to Irish investment management firm Carysfort Capital and Wall Street financial giant Angelo Gordon for €48.6m.

This works out at €324,000 per unit for the mix of apartments and duplexes at the Shackleton Park development.

The homes, which have yet to be completed, will be rented out.

Cairn sold 229 new homes last year to a so-called cuckoo fund controlled by Angelo Gordon at the same development, which comprises more than 1,100 new homes.

Cairn said two additional large private rental sector projects under construction will be marketed for sale later this year.

The company said it expects to report operating profits of around €24m for 2020, down from €68m in 2019.

Cairn closed 743 new homes sales last year and generated total revenues of around €260m in what the company said was a "stop-start year".

Strong

The company said it reduced its average selling price to €332,000, excluding VAT, from €372,000 in 2019.

It has around €980m in inventories, which includes around €690m of land held for development.

"The number of new homes we have completed and our profitability in 2020, allied with our large 2021 order book, are all strong endorsements of our business model," said Cairn co-founder and CEO Michael Stanley.

The company said it will "increase our unit sales and profitability in 2021".

It refrained from providing any guidance on its expected performance this year until it announces its 2020 preliminary results on March 4.

Shares in the company were trading up just under 2pc on Euronext Dublin yesterday.


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