10th May 2016 07:17
LONDON (Alliance News) - Cairn Homes PLC on Tuesday said it has transferred four further sites which were in the Project Clear loan portfolio into its direct ownership, and said it is on target to convert 90% of the loans into direct site ownership by the end of 2016.
Cairn and an affiliate of Lone Star Funds paid about GBP360.0 million in cash to Ulster Bank for the portfolio in December, part of a wider restructuring by Ulster Bank-owner Royal Bank of Scotland Group PLC.
On Tuesday, the company said three residential developments and one mixed use development had been moved under its direct ownership. The four site have the combined potential to deliver in excess of 1,150 residential units, Cairn said.
Cairn added it was on target to deliver on its stated aim of converting 90% of all Project Clear loans into direct site ownership by the end of 2016, and said it continued to scale its housebuilding operations towards its objective of delivering around 1,000 to 1,200 homes per year by 2019.
Cairn said its Chief Executive Michael Stanley will make a statement at its annual general meeting on Tuesday noting the progress made at the company over the past year.
"Following our successful IPO in June last year, Cairn has experienced a transformative year of strategic acquisition and investment, delivering a strong pipeline of very well located development land. In the past 12 months we have acquired a core land bank of 25 development sites with the combined capacity to deliver in excess of 11,000 homes," Stanley said in the statement.
"Sales at our Parkside site continue to progress well, with 70 houses sale agreed to date and 35 customers moved into their new homes. In addition, the launch of Cairn's development at Albany last weekend was very well received by both customers and commentators," Stanley added.
Shares in Cairn were down 1.8% at EUR1.12 on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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