Inland Homes PLC Construction contract and land transactions (6667J)
June 30 2017 - 1:01AM
UK Regulatory
TIDMINL
RNS Number : 6667J
Inland Homes PLC
30 June 2017
30 June 2017
Inland Homes plc
Inland Homes to deliver 136 units in Alperton and agrees land
sale with major housebuilder
Inland Homes plc (AIM: INL) ("Inland Homes", "the Group" or the
"Company"), the leading brownfield regeneration specialist and
housebuilder with a focus on the South and South East of England,
announces the following updates demonstrating further progress with
its construction and value enhancing planning activities and land
sales:
-- Entry into a construction contract for GBP29.5 million;
-- The sale of a site with planning consent for 58 residential units for GBP7.5 million; and
-- Entered into an option agreement for a site included within
emerging Local Plan with a potential for 150 residential units.
Construction contract
During the first half of the current financial year, the Group
sold a subsidiary containing its 173 unit site in Alperton. The
Group has now entered into a GBP29.5 million construction contract
with a housing association to build 136 of these units, which now
have a resolution to grant planning consent. The contract is
expected to be concluded in approximately three years and is
profitable, self-funding and cash generative.
This contract along with two contracts announced on Monday 26
June 2017, has been entered into by our new construction
subsidiary, Inland Partnerships, which has been specifically set up
to deliver residential units for housing associations and other
residential landlords such as PRS funds or Local Authorities.
Entering into such transactions has several benefits for the Group.
First, the sale of the land happens immediately, crystallising
recognition of the land margin and generating a cash receipt which
can be applied to reduce any associated borrowings. Secondly, the
client pays for the construction on a monthly basis which funds the
Group's costs and enables the development to proceed without the
Group incurring additional borrowings. Finally, construction income
provides a good counter balance to speculative housebuilding or
lumpier land sales in terms of revenues, cash flow and return on
capital employed.
Following this contract in Alperton, as well as the previously
announced two other contracts for the development of 85 residential
units in Southall, West London and Queensgate in Farnborough,
Inland Partnerships has now agreed construction contracts worth
GBP41.5 million.
Land sale
Inland Homes has sold the 1.5 acre Beaumont Works site in St
Albans for GBP7.5 million to a major housebuilder. The site
comprises a Grade II listed former commercial unit, as well as an
element of new build and parking for 60 cars. Inland Homes recently
secured planning permission for the development of 30 new build
apartments and 28 conversion units on the site.
Land option agreement
Inland has exchanged contracts on a nine acre Greenfield site in
the affluent village of Datchet, Berkshire on a long term strategic
option. The site has a draft allocation for 150 dwellings and has
been included in the Royal Borough of Windsor and Maidenhead's
emerging Local Plan which will be submitted to the planning
inspectorate in October 2017 for examination, with a likely
adoption in the Spring 2018.
Paul Brett, Land Director at Inland Homes, commented:
"The Group has had an extremely productive six months,
concluding a significant volume of profitable land and building
transactions for the business. The most recent land sale of
Beaumont Works has achieved GBP2.1 million more than the EPRA
valuation attributed to this site at 31 December 2016. Importantly,
we have now announced a significant number of construction
contracts for Inland Partnerships Limited, a new subsidiary of our
business that will bring a variety of operational and material
benefits to Inland Homes as we look to consistently deliver on our
strategy and drive value for our shareholders."
Enquiries:
Inland Homes plc: Tel: +44 (0) 1494
762450
Stephen Wicks, Chief Executive
Nishith Malde, Finance Director
Paul Brett, Land Director
Stifel Nicolaus Europe Limited (Nominated Tel: +44 (0) 20
Adviser & Broker): 7710 7600
David Arch
FTI Consulting (IR & Media Relations): Tel: +44 (0)20 3727
1000
Dido Laurimore
Claire Turvey
Richard Gotla
Polly Warrack
This information is provided by RNS
The company news service from the London Stock Exchange
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