Irish home builder Cairn Homes has teamed up with US private equity investor Lone Star to acquire Ulster Bank's Project Clear residential land loan portfolio for €503 mln.
Irish home builder Cairn Homes has teamed up with US private equity investor Lone Star to acquire Ulster Bank's Project Clear residential land loan portfolio for €503 mln.
Cairn Homes is contributing €378 mln for its 75% share in the transaction, with Texas-based Lone Star providing the remainder.
The investment volume represents a 75% decrease on the €2 bn par value of the loans being acquired. The portfolio relates to 31 residential development sites on 685 hectares of land.
In a statement, Cairn said that 91% of the portfolio lands are located in Dublin and the surrounding commuter belt, representing about 20% of the available residentially zoned land in the Greater Dublin area.
'This transaction will unlock the most significant land bank available in Ireland. Cairn's share of the portfolio will provide the opportunity to build over 14,000 new homes, with an expected net development value of in excess of €2 bn,' Cairn CEO Michael Stanley added.
