(Alliance News) - Countryside Properties PLC on Wednesday said it hopes to raise over GBP450 million of surplus cash through a restructure of the company.
The company plans to move away from building private homes for owner-occupiers in the home counties and instead focus on its Partnerships division, which works with housing associations and public bodies to focus on regeneration.
More than GBP450 million of surplus cash is hoped to be raised by September 2023, when the restructure will be substantially complete, Countryside noted.
The Brentwood-based firm said all housebuilding assets will be folded into the Partnerships business or sold. A new Partnerships region will be established to serve the home counties, expected to generate annualised adjusted operating profit of at least GBP60 million by 2023.
The restructure aims to fully focus the company's resources on its Partnerships unit, with no capital to be spent building new developments that do not fit the Partnerships model, Countryside noted.
The company plans to change its name to Countryside Partnerships PLC as part of a rebranding.
"The strategy will significantly accelerate the development of our Partnerships business, which will be even stronger as a result," commented Chair John Martin.
"The value of the additional recurring earnings that this will generate, along with the GBP450 million proceeds from the disposal of surplus assets, clearly significantly exceeds the value of any of the other strategic options available."
Shares were trading flat at 497.40 pence each on Wednesday shortly before midday in London.
By Will Paige; willpaige@alliancenews.com
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