Glenveagh on course to deliver 1,400 homes this year

Housebuilder Glenveagh says 80 per cent of the 1,400 homes it expects to deliver this year have either been sold already or are in the process of being sold.

In a trading statement ahead of the company’s annual general meeting, it said it currently has a total order book for 2,160 homes. That includes 358 homes reserved for 2023 and 682 apartments at various stages of development.

Chief executive Stephen Garvey said the group had "strong visibility" for the remainder of this year.

“The group remains on track to deliver our 1,400 suburban home target for 2022 which is underpinned by our strategy of focusing on the more affordable segment of the market, which is aligned with Government policy.

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“Strong demand for our high-quality, sustainable homes has resulted in the continuation of a supportive trading environment in recent months,” he said.

“The business is in a strong position, with excellent product, rigorous cost control and robust customer demand. Our position is underpinned by close alignment with Government policy to increase supply urgently and to get more keys in the hands of first-time buyers, renters and people who need social housing.”

He said continuing supply-chain constraints and as well as broader inflation were hitting the group’s material and commodity costs. However, he said, there were signs that the squeeze on labour availability was easing.

“Our expectation for CPI [consumer price index] in 2022 remains at 6 per cent,” Mr Garvey said. “The cost pressures are being offset by a level of house price inflation that reflects the underlying strength of the market.”

He said the company had agreed forward funding – where an investor buys the scheme in advance and funds the construction – on three apartment complexes in Citywest, Castleknock and Blackrock that will deliver 650 apartments between them.

Planning

He said the company needed greater clarity on planning and the impact of supply-chain disruption before buying more land for apartment development.

It was announced this week that Glenveagh has sold a 5.2 acre site in Dublin's docklands, with permission for 554 apartments, to a group led by former Glenveagh chief executive Justin Bickle for €63 million.

Mr Garvey said the sale of the site, which will feature blocks of up to 15 storeys, was consistent with Glenveagh’s strategy of focusing on the building of suburban homes and low-rise apartment developments.

The group has spent €30 million on new land for suburban projects since the start of the year, according to the trading update. Glenveagh said it continued to focus on trying to integrate its supply chain to drive greater efficiency and certainty on supplies.

The company plans a further €75 million share buyback programme, having just concluded a return of capital scheme that saw it buy back €190 million of its shares.