Inland Homes, 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.
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 €33.6m (£29.5m) 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 €47.2m (£41.5m).
Inland Homes has sold the 1.5 acre Beaumont Works site in St Albans for €8.5m (£7.5m) 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.
