10 July 2014
Telford Homes Plc (AIM:TEF), the London-focused residential property developer, will hold its Annual General Meeting (“AGM”) at 12:30 p.m. today at Telford House, Queensgate, Britannia Road, Waltham Cross, Hertfordshire EN8 7TF. At the AGM the Chief Executive of Telford Homes, Jon Di-Stefano, will make the following statement:
“I am pleased to report that the Group continues to thrive in the buoyant London property market. Evidence of the strong demand for the typical Telford Homes product is exemplified by the recent launch of Vibe, our development of 101 homes in Dalston, E8. To date, 79 of the 81 apartments in the first release have been sold bringing total Group open market sales to over 275 since 1 April 2014. This compares favourably to the 515 contracts exchanged during the year to 31 March 2014. Sales continue to both UK and overseas customers seeking high quality homes to live in or as an investment to satisfy ongoing tenant demand.
“The Group has also been successful in adding to its already significant development pipeline. In the last few weeks we have exchanged contracts for the purchase of a development site on Rotherhithe New Road, Southwark, SE16 for £19 million. The site has planning consent for 148 open market homes and 10 affordable homes in a building ranging from six to 19 storeys alongside the construction of a new primary school and sixth form academy within the lower levels. The development is expected to be completed in 2018 and has a gross development value of circa £75 million. This acquisition means future revenue expected from the Group’s development pipeline is now in excess of £950 million. The Group has a reputation for delivering value to landowners and given its strong financial position remains well placed to further add to this pipeline
“Recent measures outlined by the Bank of England to maintain prudence in the mortgage market are welcomed by the Group. There are not enough homes being built to meet demand for somewhere to live in London and affordability constraints will act as a natural break on rampant price inflation unless mortgage lending becomes uncontrolled as it did in 2006 and 2007. This is not the case today and, given the clear messages from both the Bank of England and mortgage providers along with the lower loan to value mortgages required by the Group’s typical customers, the Board remains confident of longer term stability in its areas of operation.
“The Board believes that Telford Homes is developing in the right locations at a time when there are not enough new homes being built. Given the success of recent sales launches and an enhanced development pipeline the Group is well on track to deliver the strong growth in pre-tax profits anticipated over the next four financial years as highlighted in the preliminary results issued on 28 May 2014.”
For Further information:
|Telford Homes Plc|
Jon Di-Stefano, Chief Executive
Tel: +44 (0) 1992 809 800
|Pascal Keane / Patrick Castle||Tel: +44 (0) 20 7408 4090|