Inland is pleased to report it has signed a £10m revolving credit committed bank facility with its bankers, National Westminster Bank plc.
The new facility is committed to 15 December 2009 and is secured on some of the Group's land and property assets. Although the facility falls short of the anticipated level of £15m, in view of the ongoing credit and banking crisis, Inland has done well to have secured this committed facility. The reduced level of the facility is mainly due to the low loan to values offered by the bank, which are as little as 30% on unconsented sites. This coupled with valuers taking an extremely cautious view has resulted in the previously agreed level being reduced.
We will manage our business within these restrictions and have taken a number of steps to reduce the Group's overhead base as well as recently agreeing a number of site sales with others being negotiated.
For the time being we will not be in the market for land as principals and will now concentrate on securing agreements where we can minimise our financial outlay and work with landowners to create value on brownfield sites where Inland can share in the profits in due course.
In line with this strategy of minimising our financial outlay the company is pleased to report it has entered into an agreement to promote and manage the master planning and development/sale of a substantial brownfield site in West London in return for a minimum profit share of 35% of the net profit.
The maximum financial commitment for Inland is limited to £500,000 plus professional fees estimated at a further £500,000 which will be paid over an eighteen month period.
Inland can invest further capital into the project in the future in exchange for an increased profit share but has no obligation to do so.
The agreement gives Inland the opportunity to use its skills to create a new suburban mixed use community of up to 1,000 new homes together with employment space and neighbourhood facilities.
The company is also pleased to report that since the last trading update planning permissions have been secured on 3 sites totalling 24 residential units. The Group's overall and portfolio now comprises 21 sites owned and controlled with 2,320 plots of which 407 plots have planning consent. In addition, the Group has 253,000 sq ft of commercial space.
Stephen Wicks, Chief Executive Tel: 01923 713 600
Nishith Malde, Finance Director Tel: 01923 713 600
KBC Peel Hunt Ltd, Nominated Adviser & Broker
Julian Blunt Tel: 0207 418 8900
Nicholas Marren Tel: 0207 418 8900