Cairn Homes agrees €150m debt facility

Leverage will be used to fund acquisitions and growth for Parkside developer

  Cairn Homes’ development in Parkside, Malahide Road, Dublin 13. The  50 acre Parkside site has zoning potential for a total of 433 homes when complete and Cairn expects to complete the first 200 homes before the end of 2016.

Cairn Homes’ development in Parkside, Malahide Road, Dublin 13. The 50 acre Parkside site has zoning potential for a total of 433 homes when complete and Cairn expects to complete the first 200 homes before the end of 2016.

 

Irish homebuilder Cairn Homes has agreed a new € 150 million senior debt facility with AIB to fund acquisitions and growth.

The new facility, which has a four year term, is secured against a corporate level debenture and will be used by the company to fund acquisitions and growth.

Eamonn O’Kennedy, finance director, of Cairn Homes said: “We are delighted to announce our first senior debt facility just under six months after our IPO. This facility secures flexible and efficient funding for Cairn Homes for the next four years”.

According to Davy Stockbrokers, given that Cairn has current cash reserves of about € 350m, the deal increases the company’s immediate capital deployment potential to around € 500m.

Last month Cairn said it remains confident of achieving its target of 1,000 unit sales by 2019 even though the supply-demand imbalance in the housing market here has become more acute in recent months. The builder has made strong progress at its 50 acre site in Parkside, Malahide Road, Dublin 13 and has sale agreed about 40 houses.

In June, Cairn became the first Irish homebuilder to float on a stock market since McInerney Holdings in 1997.