Ir­ish con­struc­tion firm to list on Lon­don ex­change

The China Post - - BUSINESS INDEX & -

An Ir­ish con­struc­tion com­pany an­nounced Wed­nes­day it would list on the Lon­don Stock Ex­change to raise fund­ing to de­liver new homes as strong de­mand re­turns to the Ir­ish prop­erty sec­tor.

The com­pany will is­sue shares at one euro each (US$1.11) and is seek­ing to raise 350 to 400 mil­lion eu­ros in the share plac­ing, in ad­di­tion to a 29-mil­lion-euro in­vest­ment by the com­pany’s founders.

Limited sup­ply, par­tic­u­larly in Dublin, has driven up prop­erty prices af­ter the sec­tor col­lapsed and lend­ing ceased dur­ing the 2008-2012 fi­nan­cial cri­sis.

Cairn Homes said it will fo­cus on de­vel­op­ing green and brown­field sites mainly in Dublin, but also in the cities of Cork and Gal­way, where de­mand is strong­est.

Na­tion­ally house prices were 15.8 per­cent higher in April than a year ago, ac­cord­ing to the Cen­tral Statis­tics Of­fice. In Dublin, prices were 20.2 per­cent higher.

But at a na­tional level, res­i­den­tial prop­erty prices are still 37.8 per­cent lower than their peak and pre-crash lev­els in 2007, the CSO said.

Ire­land’s econ­omy has re­bounded strongly since the crash, grow­ing at the fastest rate in Europe last year, and un­em­ploy­ment has fallen be­low 10 per­cent, but new mort­gage­lend­ing re­mains slow.

John Reynolds, Cairn Homes chair­man and for­mer chief ex­ec­u­tive of­fi­cer of KBC Bank Ire­land, said strong growth in the Ir­ish econ­omy pro­vided a strong back­drop for the IPO.

The com­pany has ac­quired a num­ber of sites, con­di­tional on the IPO, with a to­tal gross devel­op­ment value of 366 mil­lion eu­ros. Con­struc­tion is al­ready un­der­way at two sites in Dublin.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.