Telford Homes shrugs off London slowdown fear

Aaron Morby 8 years ago
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London mid-market house builder Telford Homes has upped its profit forecast for the next three years after dismissing fears of a London slowdown.

Proposed 26-storey Limeharbour building on the Isle of Dogs
Proposed 26-storey Limeharbour building on the Isle of Dogs

Jon Di-Stefano, chief executive said that the market has remained strong for the typical Telford Homes flat, being relatively affordable apartments in London with an average price comfortably below £600,000.

Telford Homes has just launched a 26-storey residential tower in the Isle of Dogs called the Liberty Building, selling 68 of the 105 open market flats in the last four weeks for £40m.

A third of these sales were to UK investors and the remainder to international investors in Hong Kong and China, with 33 sales in the latter representing the Group’s best result to date.

Liberty Building

Telford Homes presses ahead with Liberty Building in the Isle of Dogs amid strong sales demand

The development is expected to be completed in 2019.

In an upbeat trading statement this morning Di-Stefano said that many opportunities were being appraised and negotiated to  strengthen the development pipeline, utilising the £50m placing funds raised last October.

He added that private rental schemes also offered significant potential to become an increasing feature of the group’s sales mix over the next few years after selling a North London scheme for £67m to housing association L&Q in February.

Di-Stefano said: “Telford Homes continues to perform above expectations and I am particularly pleased with our first PRS deal alongside the promise of more to come and more recently our successful launch of The Liberty Building.

“Our brand and reputation continue to serve us well attracting repeat purchasers and recommendations to new customers. The Group is now in the strong position of having forward sold more than 50% of the cumulative revenue expected in the next three financial years.

“We are developing in the right parts of London where a lack of supply of new homes is driving demand from owner-occupiers, UK investors, overseas investors, their tenants and increasingly institutional investors.

“As a result of this demand and a substantially enhanced development pipeline the board has been able to increase its longer term growth expectations with profit before tax now forecast to exceed £50m in the year to 31 March 2019.”

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