30 September 2022
Inland Homes plc
('Inland Homes' or the 'Group')
Update on borrowing facility, asset management and land sale activity
Inland Homes plc (AIM: INL), the housebuilder, partnership housing developer and regeneration specialist focused on the South and South East of England, today provides an update on one of its borrowing facilities, asset management and land sale activity.
Further to the trading update on 6 September 2022, the Group is pleased to announce that it has received a waiver from its lender in respect of its revolving credit facility on the interest cover ratio covenant for the four quarters ending 30 June 2023.
In addition, the Group has agreed an extension to this facility from March 2023 to October 2023. The revised facility for £27.0m will be used towards delivering the Group's ongoing housebuilding schemes at Cressing, Essex and Meridian Waterside, Southampton. Construction at each site is expected to complete during the second half of financial year ending 30 September 2023.
The Group is pleased to announce further progress on its 'capital light' asset management projects, as follows:
Gallions Close, Barking
The Group is pleased to confirm that it has received, on behalf of the third-party project investors, a resolution to grant planning permission for 233 homes and 2,700sqft of commercial space at Gallions Close, Barking.
Former Homebase store, Walthamstow
The Group has completed the sale, on behalf of the project investor, to London BTR Investment Holdings (London BTR) of the remaining 73 plots at the former Homebase store in Walthamstow. As previously announced in June 2021, the Group exchanged contracts for the sale of 355 plots within this site to London BTR in June 2021.
Sale of land and commercial units
The Group announces it has completed two land sales to major housebuilders:
The first site was managed by the Group via a promotion agreement and was sold to Taylor Wimpey. The Group achieved a planning permission on the site for 28 homes. The second site was controlled by way of an option agreement and subsequently sold to the Vistry Group after Inland Homes had achieved planning permission on this site for 50 homes.
The Group has also completed a previously announced sale of a 3,400sqft commercial unit within its Chapel Riverside development in Southampton to a major retailer.
The net sale proceeds from the above land disposals amounted to £9.0m and will be used to reduce the Group's net debt.
Other land sale
In the trading update on 6 September 2022, the Group stated that it had reached agreement in principle (subject to legal documentation) on a land sale which, if completed by 30 September 2022, would generate a profit of approximately £25m. As the strategic review has progressed, the Board has concluded that this sale of one of the Group's major sites would not be in the best interests of shareholders, who would be better served by this key asset remaining within the Group, where there are opportunities to add further value through planning enhancement.
Nish Malde, Interim Chief Executive Officer at Inland Homes, commented:
"There continues to be strong demand for our high-quality land assets and planning expertise in a market where supply of consented sites and delivery of new homes continues to lag far behind supply.
"These recent land sales, together with the progress made on various projects within our asset management division, are pleasing to see, demonstrating how the Group is optimising demand against this wider market backdrop."
Inland Homes plc: Tel: 44 (0)1494 762450
Nishith Malde, Interim Chief Executive Officer
Panmure Gordon (UK) Limited Tel: 44 (0)20 7886 2500
Dominic Morley / James Sinclair-Ford (Corporate Advisory)
Erik Anderson (Corporate Broking)
The information contained in this Announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (Regulation 596/2014), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").
Notes to Editors:
Incorporated in the UK in 2005, Inland Homes plc is an AIM-listed specialist housebuilder and brownfield developer, dedicated to achieving excellence in sustainability and design.
Inland Homes acquires brownfield land in the South and South East of England principally for residentially led development schemes. The business then enhances the land value by obtaining planning permission, before building open market and affordable homes or selling surplus consented land to other developers to generate cash.
The Group is committed to extensive public and community consultation in order to ensure that, where possible, local community needs and objectives are met.
Inland's aim is to create sustainable communities and homes which set a benchmark for all future developments in the South and South East of England. The Group is always looking for brownfield sites without planning permission for future development.
Environmental, Social and Governance credentials
Inland Homes is committed to ensuring its land, housebuilding and partnership housing activities leave a positive lasting legacy. As specialists in brownfield site regeneration the Group already has a proud history of adding lasting value through its expertise and experience in site remediation, which allows derelict and near derelict land to be regenerated and used for the construction of new homes.
Inland Homes takes its position as an industry leader extremely seriously and has developed its Environmental, Social and Governance (ESG) framework against the broader backdrop of an escalating global climate issue. The Group's ESG framework, which has been aligned to four of the UN Sustainable Development Goals, sets out our high-level commitments. Using this framework, we are now focused on developing a full ESG strategy. The strategy will identify clear goals and metrics to enable us to measure and report on our performance and success in this space.
For further information, please visit the Inland Homes website at: www.inlandhomesplc.com
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