Trading Update

Inland, which specialises in buying brownfield sites and enhances their value by obtaining planning permission, is pleased to announce a number of additional land and development updates following on from the trading update of 11th December 2009.

Inland is pleased to confirm the completion of the sale of a former pub site in Farnborough, Hampshire on which a consent had been obtained for 19 units.

The sale was conducted by informal tender with 100 interested parties requesting details; 11 bids were received with the top 5 invited to make best and final offers with a subsidiary of one of the major quoted housebuilders being the successful party. 

The sale consideration was £1,378,000 which after repayment of associated debt of £408,000 and retention of £266,000 generated free cash flow of circa £704,000.  The retention is expected to be released shortly.  The sale achieved a significant premium to the carrying value of the site.

The Company is further pleased to announce that it has entered into a joint venture which has acquired an 11 acre site in Croxley Green, Hertfordshire which has consent for 51 houses, including 15 which have been pre-sold to a housing association for affordable housing.  Inland’s joint venture partner is Howarth Homes plc, a company in which Inland holds a 33% equity interest.  Both parties have injected £2m each towards the land purchase price of £7.5m.

The building costs of the scheme will be fully funded by a major bank who have provided committed facilities.  The scheme is anticipated to produce gross revenues in excess of £20m.

Stephen Wicks, C.E.O. of Inland commented “this site is in a prime woodland setting in a good London suburb.  The consent is for high quality family housing for which we anticipate strong demand.  We expect this to be a very profitable venture for Inland”.

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