(Sharecast News) - Housebuilder and urban regeneration company Countryside Properties has raised around £250m through a placing and subscription to bolster its balance sheet amid the coronavirus pandemic and fund further growth in the Partnerships division.
Countryside said 74.6m new shares were issued at 335p each, which is a 6.7% discount to the closing share price on Wednesday.
In a statement announcing the placing late on Wednesday, the company said the fundraising would help cement its "strong market position in Partnerships in this high-return and long-term structural growth area".
It also provided an update on third-quarter trading. Total completions during the period fell to 449 homes from 1,055 in the third quarter of last year, while the private average selling price rose to £398,000 from £374,000.
The net reservation rate came in at 0.53 compared to 1.00 in Q3 last year, with the sales teams working virtually until 1 June.
Countryside hailed a "strong" total forward order book, up 34% at £1.5bn, comprising £1.0bn in Partnerships, up from £720m in the same period a year ago.
Chief executive Iain McPherson said: "Whilst we have seen significant disruption through the quarter, our return to site was well executed and we have seen increased interest from customers in recent weeks.
"Our Partnerships business and its focus on affordable and private rented sector homes continues to show particular resilience. The creation of the Midlands division along with progress on our second modular panel factory will create the platform to continue to grow our business in the medium-term. This, together with our strong forward order book, positions the group well for the future."
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