For immediate release
27 January 2011
('Inland' or the 'Company')
Land Portfolio Update
Sale of residential plots at Inland's largest site Drayton Garden Village, West Drayton, Middlesex
Payment completion for one of Inland's major sites Queensgate, Hampshire
Inland plc (AIM:INL), which specialises in buying brownfield sites and enhances their value by obtaining planning permission before selling consented land on to developers, is pleased to announce the following land update.
Inland has now completed the sale announced on 24 December 2010 of 89 plots at Drayton Garden Village, one of its major sites near Heathrow Airport. Of the 773 plots at Drayton Garden Village,148 have now been sold generating gross land receipts of £14.6m so far on this project.
The total value of the 89 plots sold was £9.5m along with further consideration to be received if sales revenue achieved by the purchaser exceeds a certain level. Net completion monies will amount to £8.7m with the deposit monies of £800,000 having been received in December 2010.
In addition Inland is pleased to announce that at Queensgate, another of the Company's major developments, a further £2m of deferred consideration was paid by Inland in December 2010 and the final £2m of deferred consideration is due to be paid by 31 January 2011 which will leave the 278 plots and 100,000 sq ft of commercial property at this site unencumbered. The annual rental income being derived from the commercial property on this site amounts to £278,000.
Stephen Wicks, Chief Executive commented:
"We are delighted to have completed the sale of further plots at our largest site, Drayton Garden Village. We are committed to our strategy of unlocking value from sites in desirable locations and which have often been derelict or empty. The Group provides the raw material for house builders to build on thus creating jobs, green spaces and much needed housing. This sale demonstrates the continued demand for land from our portfolio of sites.
"We have an attractive portfolio in good geographical locations which is largely ungeared. We expect to add further quality sites to our land bank and capitalise on our strengths and proven track record throughout 2011 and beyond."
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
Inland identifies brownfield land in the South East of England with excellent potential for residential and mixed use development including commercial space. Inland then enhances the land value by applying its expertise to obtain planning permission and subsequently sells the consented land onto house builders. Inland's current portfolio consists of 8 sites with a total of 1,770 residential plots of which 1,160 are consented and 256,000 sq. ft of commercial space of which 156,000 sq. ft. is consented. Inland's strategy is to secure larger sites alongside joint venture partners. Land disposals are core to fund operations and realise the value of existing sites. The Company also develops a small part of large sites and constructs the infrastructure so as to provide serviced sites to house builders and create an attractive environment.
About Queensgate, Farnborough, Hampshire
Queensgate is a 24.5 acre former RAF base acquired in 2006. Inland obtained planning permission for 399 residential plots, an 80 bed nursing home and 56,000 sq. ft. of commercial space. The site was acquired from the MOD for £21.5m of which £2m remains outstanding and is expected to be paid by 31 January 2011. The Gross Development Value from this site is expected to be £58m.
About Drayton Garden Village, West Drayton, Middlesex
Drayton Garden Village, formerly RAF West Drayton, is a 31 acre site located approximately one mile from Heathrow Airport acquired in January 2009. Inland obtained planning permission for 773 residential plots, an 80 bed nursing home, a Primary Healthcare facility and some commercial space. The site is held by a joint venture partner with deferred consideration outstanding of £20.74m payable in three instalments by 15 January 2013. The Gross Development Value from this site is expected to be £185m.