Land and build sale to leading housing association

RNS Number : 6493N

Inland Homes PLC

01 October 2021

 

1 October 2021

Inland Homes plc

("Inland Homes", "Group" or "Company")

Land and build sale to leading housing association at the former Homebase, Walthamstow

Inland Homes, the brownfield developer and housebuilder focused on building residentially led developments for direct sale or on behalf of partner organisations, today announces the sale, on behalf of the project investors, of 228 plots at the former Homebase site in Walthamstow to the leading housing association Newlon Build Ltd. The sale is for a total consideration of £22.5m and generates fees of £1.2m for Inland Homes.  

The Group has separately secured a build contract for Inland Partnerships to construct the 228 homes, adding £42.4m to the Group's forward order book for partnership housing and bringing the total number of homes under construction on behalf of third parties to 1,358.

The Group acted on behalf of external investors in the land sale. As one of the Group's asset management projects, the project has been funded externally, with the investors benefitting from Inland Homes' expertise and experience in identifying and securing attractive, viable sites and achieving planning consent on these. The capital light nature of this funding model, together with the management fees earned at various milestones of the project, enable the Group to generate attractive and significant returns. 

Contracts have been exchanged and completed for 72 of the 228 residential plots. Contracts for the remaining 156 plots have been exchanged and will complete in early 2022.

The Group is also pleased to announce that contracts have been completed by the project investors for the sale of 173 plots within the same development to London BTR Investment Holdings. This follows the exchange of contracts with the Build to Rent operator for 355 homes in June 2021, for a total consideration of £27.5m. Completion of the sale of the remaining 182 plots is expected by September 2022. As previously announced, Inland Partnerships is constructing these 355 private homes in what is its largest partnership housing contract secured to-date at £88.9m. 

Planning consent was achieved for the 583 homes at Walthamstow in April 2021. Following site demolition and preparation works, construction began in September 2021 and build completion is scheduled for 2025.  The project is one of six currently within the Group's asset management division which together have the potential for more than 3,275 new homes.

Chief Executive Stephen Wicks commented:

"The sale of 228 plots at Walthamstow to a leading housing association, together with the build contract for Inland Partnerships to deliver these homes, further endorses the Inland Homes business model.

Inland is once again demonstrating its ability to add value at all stages of a project: from identifying the right site and obtaining planning permission on behalf of investors to having the expertise needed to deliver homes on behalf of one of the country's leading housing associations.

Transactions like these are helping Inland to deliver against its key strategic priorities: reducing our net debt, maximising the value of our land bank, growing the capital light asset management business and delivering homes which meet the market's needs in the most cost-effective way.

We look forward to working with both Newlon and London BTR Investment Holdings to deliver this exciting inner-city regeneration project."

Enquiries

Inland Homes plc:	Tel: [phone]
Stephen Wicks, Chief Executive
Nishith Malde, Finance Director
Gary Skinner, Managing Director
Panmure Gordon (UK) Limited	Tel: [phone]
Dominic Morley
Erik Anderson
Instinctif Partners Tim McCall	Tel: [phone]
Galyna Kulachek
Bryn Woodward

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Notes to Editors:

Incorporated in the UK in 2005, Inland Homes plc is an AIM listed specialist housebuilder and brownfield developer, dedicated to achieving excellence in sustainability and design.

Inland Homes acquires brownfield land in the South and South-East of England principally for residentially led development schemes. The business then enhances the land value by obtaining planning permission, before building open market and affordable homes or selling surplus consented land to other developers to generate cash.

The Company is committed to extensive public and community consultation in order to ensure that, where possible, local community needs and objectives are met.

Inland's aim is to create sustainable communities and homes which set a benchmark for all future developments in the South and South East of England. The Company is always looking for brownfield sites without planning permission for future development.

For further information, please visit the Inland Homes website at: www.inlandhomes.co.uk  

Hugg Homes - www.hugghomes.co.uk  

Rosewood Housing - www.rosewoodhousing.co.uk

 

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