Planning Consent and Land Transactions

RNS Number : 0790J

Inland Homes PLC

26 June 2017

 

26 June 2017

Inland Homes plc

Inland Homes wins planning consent and construction contracts for more than 190 residential units and agrees strategic land sales

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, is pleased to announce the following updates:

·    Gaining of a resolution to grant planning consent for 88 private residential units, along with a 100 bed hotel, at the site of the Wessex Hotel in Bournemouth

·     Sale of two parcels of land with planning consent for 85 residential units for £9.6 million,

·     Entry into two construction contracts for a total sum of £12 million; and

·     Sale of the Centrifuge building at Queensgate, Farnborough for £1.95 million.

Planning consent in Bournemouth

Inland has received consent for the development of 88 private residential units, split across 39 one-bed, 43 two-bed and six three-bed apartments, as well as a new 46,000 sq ft hotel and associated car parking facilities at the Wessex Hotel site in Bournemouth. The gross development value of the 88 residential units will be in excess of £28 million.  Located in central Bournemouth, approximately half a mile from the city centre in the West Cliff area, the site comprises 2.3 acres of land which includes an existing 109 bed, five storey hotel with parking for 84 cars. The hotel has remained in operation in order to generate income during the planning process.

Land sales and construction contracts

Inland Homes has also completed the sale of two land parcels to different housing associations, following which the Group has agreed construction contracts with the purchasers for the delivery of a combined total of 85 residential units. Both deals are self-funding, cash generative and will generate industry standard profit margins:

·   In Southall, West London, Inland Homes has sold the Witley Gardens site for £8.05m to a housing association after installing all the foundations for the units to be constructed. The Group has simultaneously entered into a £8.5 million construction contract with the housing association to build out the 57 apartments on the site, with delivery anticipated in approximately 18 months.

·    In Queensgate, Farnborough, Inland Homes has sold a 28-unit parcel of land to a housing association at Farnborough for £1.57 million, and has entered into a construction contract to build the 28 units for a further £3.1 million, which will be delivered in approximately 15 months. The 28 units make up the affordable housing element of the final phase of 80 units at the Group's Queensgate, Farnborough development. The remaining 52 private residential units, on this site have a gross development value of £14.5m.  These units are also under construction and will be sold on the open market.

In a separate transaction, Inland has exchanged unconditional contracts to sell the Centrifuge building for £1.95 million at Queensgate, Farnborough, with completion expected today. The Group refurbished the listed building during the course of the Queensgate project and it is let to Qinetic.

Stephen Wicks, CEO at Inland Homes, commented:

"We have been undergoing a period of strategic growth over the last 18 months, during which we have not only grown our pipeline of permitted land for high quality homes against a continued backdrop of a housing shortage crisis, but also significantly invested in our in-house building operations. Today's announcement is a strong endorsement that this strategy is bearing fruit. The disposals alone will have generated free cash flow of approximately £8.0 million after repaying any related borrowings. These transactions will result in a further increase in EPRA net asset value of approximately £1.0 million since 31 December 2016."

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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
FTI Consulting (IR & Media Relations):		Tel: [phone]
Dido Laurimore
Claire Turvey
Richard Gotla Polly Warrack

 

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