Lone Star de­lays house­builder IPO af­ter slump

The Irish Times - Business - - FRONT PAGE - JOE BREN­NAN

US pri­vate eq­uity gi­ant Lone Star’s plans for the €300 mil­lion-plus ini­tial pub­lic of­fer­ing (IPO) of an Ir­ish house­build­ing firm have been put on hold un­til next year, fol­low­ing a “red Oc­to­ber” sell-off of eq­ui­ties glob­ally last month, ac­cord­ing to mar­ket sources.

The com­pany, called DRes, set up in part­ner­ship with Durkan Res­i­den­tial’s man­ag­ing di­rec­tor, Pa­trick Durkan, is said to have re­ceived pos­i­tive feed­back from po­ten­tial in­vestors on its plans as new home sup­ply falls well short of de­mand.

How­ever, a rally by stocks glob­ally in the past eight ses­sions has not pro­vided a favourable enough back­drop to launch a trans­ac­tion, es­pe­cially as shares in DRes’s near­est peers, Cairn Homes and Glen­veagh Prop­er­ties, are lan­guish­ing be­tween 24 per cent and 27 per cent be­low where they started 2018 on the Dublin mar­ket.

A spokesman for DRes de­clined to com­ment.

DRes is the lat­est of a string of Ir­ish IPO hope­fuls to have put plans on ice re­cently. The Ir­ish Times re­ported last month that US pri­vate eq­uity group Oak­tree and Dublin-based Sigma Re­tail Part­ners has de­layed un­til next year a de­ci­sion on whether to pro­ceed with Ire­land’s first re­tail real-es­tate in­vest­ment IPO.

Press Up, the pub, restau­rant and ho­tel group led by Paddy McKillen ju­nior, de­cided last month to moth­ball plans for a stock mar­ket flota­tion, while the Sun­day Times re­ported that prop­erty in­vest­ment and hos­pi­tal­ity group Te­trarch has shelved plans for a 2018 flota­tion due to mar­ket volatil­ity.

DRes, which has been work­ing with US in­vest­ment bank JP Mor­gan and Davy in Dublin on a trans­ac­tion, is un­der­stood to con­trol a land­bank ca­pa­ble of de­liv­er­ing more than 6,400 houses and apart­ments.

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