East Road Site Sale & Further Capital Returns
1 June 2022
Glenveagh Properties PLC
("Glenveagh" or the "Group")
Completion of East Road Site Sale & Further Capital Returns
Glenveagh, a leading Irish homebuilder, is today announcing the completion of the East Road site sale and the initiation of a €75m share buyback programme.
Completion of East Road Site Sale
Consistent with the Group's strategy of focusing our construction resources on Suburban housing and low-rise Urban apartments, we are pleased to confirm the completion of the East Road site sale in the Dublin Docklands for a cash consideration of approximately €63 million.
The Group has now generated approximately €210 million of income from the Dublin Docklands via three separate transactions: site sales at both Castleforbes and East Road, and the forward fund of the Premier Inn hotel. The Group's final asset in the Dublin Docklands is our 12,500 sqm office development which we will look to monetise closer to practical completion in 2024.
Our continued strategy of accelerating the monetisation of our Urban portfolio provides strong visibility on reaching our target of €500m land value by year end, while also allowing the business to improve capital efficiency through a further share buyback programme commencing today.
These transactions have also significantly reduced the concentration risk in the Group's landbank and will allow the business to focus on delivering homes across our Suburban, Urban and Partnerships segments aligned with Housing For All and supported by our increasingly integrated supply chain partnerships.
Capital Allocation Update
The Group is focused on our three capital allocation priorities: investment in supply chain, land, and work-in-progress. Once these priorities are satisfied, any excess cash identified will be returned to shareholders.
Taking these capital allocation priorities into consideration and the successful execution of our strategy, at our AGM we announced that we had identified €75 million as excess capital which we proposed to return to shareholders in the form of a Share Buyback Programme once the East Road site sale completed.
This is the Group's third Share Buyback Programme and follows the successful completion of two Buyback Programmes for a combined €185m and brings the total capital returns announced since our 2021 AGM to approximately €260m.
Initiation of €75m Share Buyback Programme
Glenveagh announces that it has entered arrangements today with J&E Davy ("Davy") to repurchase ordinary shares of €0.001 each (the "Shares") on Glenveagh's behalf for a maximum consideration of €75 million (the "Buyback").
The Buyback will commence later today, 1 June 2022, and may continue until 31 May 2023 subject to market conditions and the ongoing capital requirements of the business.
Under the terms of the Buyback, ordinary shares will be repurchased on Euronext Dublin. Glenveagh has entered non-discretionary instructions with Davy, acting as principal, to conduct the Buyback on Glenveagh's behalf and will make trading decisions under the Buyback independently of Glenveagh in accordance with certain pre-set parameters.
The Buyback will be conducted within the parameters prescribed by the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU)2016/1052 (also as in force in the UK, from time-to-time, including, where relevant, pursuant to the UK's Market Abuse (Amendment) (EU Exit) Regulations 2019) and in accordance with the requirements of the Euronext Dublin Listing Rules. The purpose of the Buyback is to return excess capital to the Company's shareholders and reduce the share capital of Glenveagh.
The execution of the Buyback may be augmented by the purchase of Shares by way of block trades. The maximum consideration payable by the Group under the Buyback will be reduced by the corresponding amount of capital returned through block trades.
ENDS
For further information please contact:
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Investors: |
Media: |
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Glenveagh Properties PLC Michael Rice (CFO) Chloe McCarthy (Group Company Secretary) investors@glenveagh.ie |
Gordon MRM Ray Gordon 087 241 7373 David Clerkin 087 830 1779 glenveagh@gordonmrm.ie |
Notes to Editors
Glenveagh Properties plc, listed on Euronext Dublin and the London Stock Exchange, is a leading Irish homebuilder.
Supported by innovation and supply chain integration, Glenveagh are committed to opening access to sustainable high-quality homes to as many people as possible in flourishing communities across Ireland.
We are focused on three core markets - suburban housing, urban apartments and partnerships with local authorities and state agencies. We are targeting to deliver 1,400 suburban homes and a number of urban apartment forward fund transactions in 2022. The landbank we have assembled can deliver housing that is both in demand and affordable.
www.glenveagh.ie
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