For immediate release
24 December 2010
('Inland' or the 'Company')
Land sale at Drayton Garden Village
Inland, which specialises in buying brownfield sites and enhances their value by obtaining planning permission, is pleased to announce that it has exchanged contracts unconditionally for the sale of 89 housing plots at Drayton Garden Village ("DGV").
The land was sold for £8,000,000 together with a contribution towards infrastructure works of £1,500,000 providing a total value of £9,500,000 along with further consideration to be received if sales revenue achieved by the purchaser exceeds a certain amount. This values each plot at an average of £107,000. Completion of this land sale is due to take place on 25 January 2011.
Inland is currently due 42% of the profits from disposals of land at DGV and its share of profits from all land disposals will ratchet upwards on a pro rata basis up to a maximum of 90% as the outstanding deferred consideration of £20.74m is paid to the vendor either by Inland or via cash generated from disposals of land at DGV. The next payment of deferred consideration of £7.0m is agreed to be payable in March 2011.
Stephen Wicks, Chief Executive commented:
"Having now repaid our entire bank facility with RBS, we are delighted to be announcing the sale of the second parcel of land at Drayton Garden Village. This will improve the Group's cash flow and help fund the next deferred consideration payment on this land, resulting in an increase in Inland's profit share to circa 58%.
This and recent land sales continues to demonstrate that there is still a healthy demand for land in the right locations."
Stephen Wicks, Chief Executive Tel: 01494 762450
Nishith Malde, Finance Director Tel: 01494 762450
FinnCap Nominated Adviser & Broker
Matthew Robinson (Corporate Finance) Tel: 020 7600 1658
Charlotte Stranner (Corporate Finance) Tel: 020 7600 1658
Jeremy Garcia / Christian Goodbody Tel: 020 7466 5000