REG - MJ Gleeson Plc - Sale of portfolio of homes to Carlyle

MJ GLEESONAnnouncement

30/06/2023 07:00

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RNS Number : 4594E  MJ Gleeson PLC  30 June 2023

 

30 June 2023

 

MJ GLEESON PLC

 

Sale of portfolio of homes to Carlyle

 

Transaction underscores recognition of the quality of Gleeson's product

 

MJ Gleeson plc ("Gleeson" or the "Company") is pleased to announce that it has
entered into a contract with global investment firm Carlyle (NASDAQ: CG) and
Gatehouse Investment Management, a market leading single-family housing
investment manager, for the sale of 288 homes across multiple developments, of
which up to 66 homes are expected to be completed in the financial year ending
30 June 2023 ("FY2023") with the balance in FY2024.

 

Consideration for the sale totals £50.4m payable in cash upon completion of
each home, save for a small retention. The proceeds will be reinvested into
the business for working capital purposes. This transaction strengthens
Gleeson Homes' forward order book and allows the business to expedite the
opening of new sites.

 

The Company will issue its next scheduled trading update, in respect of the
year ending 30 June 2023, on 7 July 2023 and expects to confirm that it will
deliver results for FY2023 in line with expectations.

 

Graham Prothero, Chief Executive Officer, commented:

 

"This transaction represents a compelling opportunity in the context of the
current uncertain market environment and we are delighted to be working with
partners of the calibre of Carlyle and Gatehouse, who value the quality of our
product and the communities which we create."

 

 

Enquiries:

 

 MJ Gleeson plc                            Tel: +44 1142 612900
 Graham Prothero  Chief Executive Officer
 Stefan Allanson  Chief Financial Officer

 Hudson Sandler                            Tel: +44 20 7796 4133
 Mark Garraway                             Tel: +44 7771 860 938
 Charlotte Cobb                            Tel: +44 7795 422 131

 

About MJ Gleeson:

 

MJ Gleeson (https://www.mjgleesonplc.com/) plc is the leading low-cost,
affordable housebuilder listed on the London Stock Exchange. Gleeson Homes'
customers are typically young, first-time buyers, with a median income of
£26,000. Its two-bedroom homes start from around £115,000. Gleeson's vision
is "Building Homes. Changing Lives", prioritising areas where people need
affordable housing the most.

 

Buying a Gleeson home typically costs less than renting a similar property.
All Gleeson homes are traditional brick built semi or detached homes which
include a driveway and front and rear gardens. Gleeson offers a wide mix of
two, three and four bedroom layouts.

 

Gleeson Land is the Group's land promotion division, which identifies
development opportunities and works with stakeholders to promote land through
the residential planning system.

 

As a high-quality, affordable housebuilder, Gleeson has strong and inherent
sustainability credentials. Its social purpose underpins the Company's
strategy, and Gleeson measures itself closely against UN SDGs 5, 8, 11, 12, 13
and 15.

 

More details on the Company's sustainability approach can be found at:
mjgleesonplc.com/sustainability/
(https://mjgleesongroupplc.sharepoint.com/sites/F/Shared%20Documents/STATS/2022-23%20Interim%20December%202022/Trading%20Update%2013%20Jan%2023/mjgleesonplc.com/sustainability/)
 

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