Telford raises cash to speed up housing starts

Grant Prior 9 years ago

London residential specialist Telford Homes is raising £20m via a share placing to speed-up developments in the capital’s booming housing market.

Telford wants to acquire more sites and accelerate construction on its current development pipeline of 2,260 homes to keep up with growing demand.

The company has already pre-sold 99% of its expected completions for the year to March 2014 and 50% for the years up to March 2016.

The sales have been achieved without the help of the Government’s Help to Buy equity loan scheme which will boost demand further when Telford joins it by the end of this month.

Telford said: “The Company’s sales success is, in part, a function of an imbalance between the high level of demand for homes in London, both for purchase and to rent, and the level of supply of those homes.

“For several years the housebuilding industry has been unable to meet the anticipated demand for new homes in London and yet population growth has continued throughout that period.

“The Directors have concluded that, in the light of the strength of the micro-economy in London, its continuing worldwide reputation and the fundamental on-going shortage of supply of new homes, there is capacity for the Company to significantly increase its output over the next few years.”

The share placing has already been over-subscribed and will add to extra bank funds secured in April to provide £50m in extra funding for new developments.

Jon Di-Stefano, Chief Executive of Telford Homes, said:  “I am delighted that our exceptional sales performance and the many opportunities for Telford Homes to grow in London have resulted in our proposed Placing to raise £20 million being substantially oversubscribed.

“Together with our increased bank facility secured in April 2013 the equity raised will give the Group nearly £50 million to invest in new development opportunities, some of which have already been identified.

“This investment will accelerate the growth of Telford Homes and underlines our belief in the long term future of the housing market in London.”

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