Cairn Homes has pipeline of 11 sites valued at €120m

Home building group Cairn Homes said on Thursday it is considering acquiring 11 sites valued at €120m with a potential to build about 1,600 residential units.

Michael Stanley, chief executive, said: "The availability of prime development lands continues to be a positive for Cairn Homes and the company is confident in its pipeline to deliver quality homes in a market where there is an acute shortage of supply."

Revenues stood at €51m for the six months to June 30th, the company said.

Cairn Homes listed on the London Stock Exchange in June, raising €440m, and to date has acquired, or contracted to acquire, nine prime development sites at a cost of € 130m.

The group has either started construction, or intends to do so over the coming two years, on eight sites across the country which will result in the construction of some 1,398 units.

Cairn said that a full marketing launch for its Parkside site in Malahide, north county Dublin, is scheduled for September, with average selling prices of €315,000 to €395,000. Its Albany, Killiney, south Dublin, development is scheduled for launch in Q1 2016.

It also has a “strong strategic pipeline in target areas”, with its land acquisition team carrying out detailed due diligence on 11 sites, with a total projected cost of about € 120m and total potential units of about 1,600.

Cairn also said that a "significant number" of new site acquisition opportunities are expected to come to the market over coming months, with Nama and Ulster Bank likely to sell sites.

Colin Sheridan, an analyst with Davy Stockbrokers, said in a note that Cairn “continues to be the best way to play the Irish housing recovery story”.