Acquisition of major development opportunity

RNS Number : 4333D

Inland Homes PLC

06 July 2016

 

6 July 2016

Inland Homes plc

Inland Homes acquires major development opportunity

at former Tesco headquarters site in a Joint Venture

Inland Homes Plc (AIM: INL) ("Inland Homes", the "Company"), the leading brownfield regeneration specialist and housebuilder with a focus on the south east of England and outer London, announces the unconditional purchase of a substantial regeneration project in Cheshunt, Hertfordshire. Contracts have been exchanged by a 50 / 50 joint venture with a third party (the "Joint Venture") on a site of approximately 13 acres, which includes the former headquarters of Tesco Plc, with the transaction completing in mid-August 2016.

Situated just outside the M25 to the north of London and 27 minutes from Liverpool Street station by train, the acquisition comprises a major regeneration opportunity for Inland Homes and is fully aligned with its strategic objectives and specialist skill set. The 13 acres forms part of a wider 20 acre site that is expected to be selected as the planned location for a major new urban village of up to 1,000 homes, delivering employment opportunities and extensive community facilities.

The land purchase is being funded by £5 million of equity from each Joint Venture party with the balance to be financed by a bank loan, for which a facility has already been credit approved. Inland Homes will guarantee, subject to an agreed liability cap, certain interest payments under the terms of the bank loan. The Joint Venture will distribute all profits in proportion to each party's shareholding in the project. Inland Homes will act as operator to the Joint Venture, which is jointly managed by both parties.

Stephen Wicks, CEO at Inland Homes commented:

"This is an important acquisition of a prime, well-located site where the local authority is supportive of regeneration and where Inland Homes can bring its considerable experience to bear to potentially create a new exciting and well-planned urban village. Cheshunt fits all our location requirements, situated close to junction 25 of the M25 and having a fast mainline train service to London Liverpool Street station, as well as being on the route of the proposed Crossrail 2.

"In the two weeks since the Referendum vote, we have continued to see the same level of appetite from potential purchasers for our homes, which are at the more affordable end of the housing spectrum and are supported by strong fundamentals such as the current low interest rates and the Help to Buy scheme. While we are vigilant to the wider market landscape, we will continue to seek opportunities that meet our strategic objectives, such as this acquisition in Cheshunt which is a long term project in a strong location and benefits from local political support."

ENDS

Enquiries:
Inland Homes plc: Tel: [phone] Stephen Wicks, Chief Executive Nishith Malde, Finance Director Paul Brett, Land Director Stifel Nicolaus Europe Limited (Nominated Adviser & Broker): Tel: [phone] David Arch Roger Clarke FTI Consulting (IR & Media Relations): Tel: [phone] Dido Laurimore Claire Turvey Polly Warrack

 

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