Cairn Homes Plc, the Irish homebuilding company, today announced that it has entered into an agreement to acquire the residential land portfolio represented by the Ulster Bank Project Clear loan portfolio.

An acquisition price of €503 million has been accepted by Ulster Bank for the entire portfolio.  The par value of the loans being acquired is c. €2 billion attached to 1,694 acres, which includes 31 residential development sites

Commenting on today’s announcement, Cairn CEO Michael Stanley said, “We are delighted to have entered into an agreement with Ulster Bank for the Project Clear loan portfolio, one of our key strategic targets. I would like to congratulate and thank Lone Star for also recognising this truly unique opportunity. 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 billion.”

The portfolio will be divided, with Cairn contributing €378m for its share. 91% of the portfolio lands are located in Dublin and the surrounding commuter belt, representing c. 20% of the available residentially zoned land in the Greater Dublin Area

Cairn’s c. 75% share of the portfolio gives the company the opportunity to build over 14,000 new homes over the coming years, with an expected net development value of in excess of €2 billion

The deal is expected to be completed by the end of the year.