Telford Homes shrugs off London slowdown fear

Aaron Morby 8 years ago

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.”

Latest news

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
6 hours ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
3 hours ago

Labour to mothball £320m A27 job to fix potholes

Manifesto confirms Arundel Bypass canned as "poor value for money"
10 hours ago

Lendlease’s £1.9bn Smithfield Birmingham scheme approved

Initial work to start later this year despite questions over Lendlease's degree of involvement
11 hours ago

Crest Nicholson rejects £650m Bellway bid

Second Bellway approach rebuffed
19 hours ago

Hill submits £800m East London estate rebuild plan

Over 1,900 homes to be built in five phase at Teviot Estate in Poplar
1 day ago

Plan approved for 8,500-seat Edinburgh indoor arena

Construction expected to start next year once a contractor is appointed
9 hours ago

Statom starts on £25m Bristol Airport precast car park

Major work package on transport upgrade being overseen by Griffiths Farrans JV
1 day ago

Build problems plunge Crest Nicholson to a £31m loss

House builder unearths more defects on completed sites
1 day ago

Rebooted Amey lifts contract win rate to 1 in 3 bids

Amey chief says firm exceeded expectations in first year under new owners
1 day ago

BAM Nuttall fined £2.3m after worker drowned

Court hears how series of safety failures led to tragedy
2 days ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
2 days ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
2 days ago

Galliford Try wins £69m Scottish school job

Deal sealed on Paisley Grammar School project in Renfrewshire
1 day ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
2 days ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
2 days ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
2 days ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
2 days ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
3 days ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
2 days ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
2 days ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
3 days ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
3 days ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
3 days ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
3 days ago

Renew buys utilities contractor Excalon

Infrastructure giant expand into electricity transmission market with £26m deal
3 days ago

Planning for new homes plunges to record low

Home builders call for urgent action from incoming government
3 days ago

JTRE starts £400m 21-floor London tower scheme

Office block and 64 affordable homes to be built at 220 Blackfriars Road site
4 days ago

R G Carter construction profits up despite 24% revenue fall

Selective client choice help profit jump to £6m from £1m previously
4 days ago

Refurbs power London office work to record high

London Office Crane Survey office work starts exceed 4m sq ft for record third quarter
4 days ago

Contractor services