(Alliance News) - Countryside Properties PLC on Wednesday said its third quarter home completions dropped annually but selling prices climbed and the FTSE 250 housebuilder unveiled plans for a GBP250 million balance sheeting-bolstering fundraise.
Total third-quarter completions were 449 homes, a 57% drop year-on-year from 1,055 homes. Private average selling prices rose to GBP398,000, however, a 6.4% annual climb.
"We have now recommenced construction on all of our sites and re-opened our two factories," Countryside noted, the housing sector was among those hit by Covid-19 lockdowns in the UK.
"Our private sales levels have remained robust, as we operated virtually during the quarter until reopening our sales offices on 1 June 2020. Demand continues to be strong across all tenures, reflected in a high level of customer interest and a net reservation rate of 0.70 in the last 4 weeks, in line with the group's target range of 0.6 to 0.8 with little change seen in pricing from pre-Covid levels."
Countryside plans to raise GBP250 million in a placing, subscription and retail offer.
"The net proceeds of the placing, the subscription and retail offer will be used to help fund and accelerate Partnerships growth and to strengthen the group's balance sheet following the impact of the Covid-19 related lockdown. Upon receipt, the entire net proceeds from the placing, subscription and retail offer will be used to repay part of the group's drawn revolving credit facility," Countryside said.
Shares in the company closed 0.4% lower at 359.20 pence each in London on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com
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