TIDMGLV
RNS Number : 1201M
Glenveagh Properties PLC
04 January 2019
4 January 2019
Glenveagh Properties PLC
Trading Statement
Glenveagh Properties PLC ("Glenveagh" or the "Group") a leading
Irish homebuilder listed on Euronext Dublin and the London Stock
Exchange today issues a trading update for the year ending 31
December 2018. The Group will report its full year results on
Wednesday 6 March 2019.
Group Highlights
Glenveagh continues to be ahead of schedule in delivering our
key IPO targets, namely acquiring land for residential building,
constructing and selling houses and apartments and scaling the
business as a PLC.
-- 2018 trading performance
o Revenues for the period of approximately EUR84m:
Ø Sales activity has been strong with 275 completed sales during
2018 (10% ahead of guidance);
Ø Unit Average Selling Price ("ASP") of EUR287k is reflective of
sales mix and the strong performance from the Group's starter-home
schemes;
-- 2019 ASP guidance EUR340k-EUR370k;
Ø Land sales of EUR5m
o Gross margin for the period is expected to be approximately
18%.
-- Land Acquisitions
o Further substantial land acquisition in Cork on lands secured
to the National Asset Management Agency ("NAMA") announced
today:
Ø The Group has acquired a site totalling 43 acres (the "Site")
in Douglas, Co. Cork (the "Acquisition"). The Site is capable of
delivering approximately 500 units for a consideration of EUR25m, a
portion of which is deferred until units are delivered.
Ø Douglas is one of Cork's most desirable residential addresses.
It is located approximately 4km south of Cork City Centre. Douglas
is easily accessible via the N40 South Ring Road. The Group's total
landbank in Cork now has capacity for approximately 2,000
units.
o With today's announced acquisition, the Group benefits from a
strategically located 11,850 unit landbank, which was acquired
largely off-market at attractive rates (18% of NDV[1]):
Ø Homes's landbank comprises 10,000 units across 42 sites in the
Greater Dublin Area, Cork, Galway and Limerick;
Ø Living's landbank comprises 1,850 units across four sites in
Central Dublin and in Galway:
-- A Strategic Housing Development ("SHD") fast-track planning
application was recently lodged on our East Road site in Dublin's
North Docklands totalling 560 units.
-- Construction
o Construction has commenced on 14 sites for Homes with
approximately 900 units under construction.
o All sites necessary to deliver the Group's units guidance of
725 for 2019 are now open.
o In excess of 75% of 2019 costs are locked-in.
-- Sales
o The Group is now selling from eight sites:
Ø 202 units signed or reserved for 2019;
Ø Further starter-home schemes (Ledwill Park, Knightsgate and
Semplewoods) will commence sales in H1 2019;
o Institutional bulk sale now the preferred exit option for
Herbert Hill. The practical completion date for this development is
Q2 2019.
Outlook
The land buying opportunity remains attractive and the Group
continue to evaluate opportunities which are accretive to our
delivery, gross margin and ROCE objectives. The Group has
substantially de-risked its 2019 construction targets with costs
now largely fixed for 2019. The Group's market backdrop remains
very favourable with significant demand for housing, particularly
starter homes where the Group will continue to focus, clearly
evident across the Group's selling sites. Glenveagh will provide a
further progress update to investors at the time of our full year
results on Wednesday 6 March 2019.
Glenveagh's Co-Founder and CEO Justin Bickle commented:
"The past 12 months have been very productive as we set out to
create a volume homebuilder for the Irish market. We have carefully
assembled a multi-year land bank for building, got off to a strong
start in opening our sites and constructing houses and apartments,
and grown our operations consistent with our business plan and
longer-term financial targets. I would like to pay tribute to all
our staff and industry partners for their hard work and dedication
in helping us deliver on our IPO promises and thank each of our
customers in helping us achieve 275 sales during 2018.
We are delighted to announce today the acquisition of a further
attractive site in Cork with the potential to accommodate up to 500
residential units in an area of high demand. We will immediately
begin work to commence development on site. More broadly, the
acquisition delivers on a key Group IPO objective to deliver
residential housing on NAMA secured lands in a partnership
structure.
The fundamentals of our sector remain strong with continued
chronic under-supply of housing in Ireland (both private and
public) and a dearth of scale homebuilders. We have cash on hand, a
strong balance sheet, and market leading construction capability.
We will continue to deliver the right type of housing to the
starter-home market based on attractive residential locations,
quality built product and value for money.
We wish to thank our shareholders and our Board for their
ongoing support and look forward to 2019 with confidence."
For further information please contact:
Investors: Media:
Glenveagh Properties Gordon MRM
PLC
Ray Gordon 087 241 7373
Justin Bickle (CEO)
David Clerkin 087 830
Michael Rice (CFO) 1779
Conor Murtagh (Director, glenveagh@gordonmrm.ie
Strategy & IR)
investors@glenveagh.ie
-------------------------
Note to Editors
Glenveagh Properties PLC is a leading Irish homebuilder listed
on Euronext Dublin and the London Stock Exchange. With a focus on
strategically located developments in the Greater Dublin Area,
Cork, Limerick and Galway, the Group comprises two complementary
divisions, Glenveagh Homes and Glenveagh Living.
Glenveagh Homes' delivers high quality starter homes to its
private customers with selective developments of mid-size and
executive houses and apartments in areas of high demand.
Glenveagh Living delivers houses and apartments for the public
sector and institutional investors. Its Partnerships business
focusses on mixed-tenure and joint venture opportunities with the
public sector in Ireland, while its PRS business delivers
large-scale private rental product for institutional investors.
www.glenveagh.ie
[1] Spot Net Development Value
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END
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