21 January 2010
INLAND PLC (the "Company")
Inland, which specialises in buying brownfield sites and enhances their value by obtaining planning permission, is pleased to announce a number of additional land and development updates following on from the trading update of 11th December 2009.
Inland is pleased to confirm the completion of the sale of a former pub site in Farnborough, Hampshire on which a consent had been obtained for 19 units.
The sale was conducted by informal tender with 100 interested parties requesting details; 11 bids were received with the top 5 invited to make best and final offers with a subsidiary of one of the major quoted housebuilders being the successful party.
The sale consideration was £1,378,000 which after repayment of associated debt of £408,000 and retention of £266,000 generated free cash flow of circa £704,000. The retention is expected to be released shortly. The sale, as expected achieved a significant premium to the carrying value of the site.
The Company is further pleased to announce that it has entered into a joint venture which has acquired an 11 acre site in Croxley Green, Hertfordshire which has consent for 51 houses, including 15 which have been pre-sold to a housing association for affordable housing. Inland's joint venture partner is Howarth Homes plc, a company in which Inland holds a 33% equity interest. Both parties have injected £2m each towards the land purchase price of £7.5m.
The building costs of the scheme will be fully funded by a major bank who have provided committed facilities. The scheme is anticipated to produce gross revenues in excess of £20m.
Stephen Wicks, C.E.O. of Inland commented "this site is in a prime woodland setting in a good London suburb. The consent is for high quality family housing for which we anticipate strong demand. We expect this to be a very profitable venture for Inland".
Stephen Wicks, Chief Executive Tel: 01494 762450
Nishith Malde, Finance Director Tel: 01494 762450
FinnCap Nominated Adviser & Broker
Les Kent (Institutional sales) Tel: 020 7600 1658
Matthew Robinson (Corporate Finance) Tel: 020 7600 1658
Rhydian Bankes (Corporate Finance) Tel: 020 7600 1658
Jeremy Garcia / Christian Goodbody Tel: 020 7466 5000