REG - Inland Homes PLC - Update on facility, asset management & land sales

Inland HomesAnnouncement

30/09/2022 07:00

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RNS Number : 2615B  Inland Homes PLC  30 September 2022

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.

 

Borrowing facility

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.

 

Asset management

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.

 

Land sales

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."

 

 

Enquiries

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

Hugg Homes - www.hugghomes.co.uk (http://www.hugghomes.co.uk)

Rosewood Housing - www.rosewoodhousing.co.uk
(http://www.rosewoodhousing.co.uk)

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