Cairn Homes agrees Montrose development loan

Irish housebuilder Cairn Homes has agreed a €50m (£44m) loan facility with Activate Capital for the development of its Montrose site in Dublin. The facility, which has a two-year term, will be secured solely by a charge over the 500-home site, which it acquired from broadcaster RTÉ earlier this year for €107.5m. Cairn has a land bank of 12,100 units, which will increase to 12,600 units with the RTÉ Montrose site, over 90% of which is located in the Greater Dublin area. Cairn is active on eight sites in Dublin, which will deliver 3,250 units. Michael Stanley, chief executive of Cairn Homes, said: “This new facility, on competitive terms, is ring-fenced on the RTÉ Montrose site, which reflects the quality of the asset being acquired. It represents an evolution of our funding strategy and sits outside our existing €200m corporate debt facility with AIB and Ulster Bank.” To send feedback, e-mail nick.johnstone@egi.co.uk or tweet @n_johnstone or @estatesgazette