Continued9 May 2007 16:29
However, this should not be viewed as a one trick pony. Oakdene has sites in Surrey, Sussex and Kent. While Newhaven is only now starting to be developed, other sites are already generating significant sales at the top end of the market. At Swaylands, the first phase of development has seen the refurbishment and construction of 28 luxury apartments launched in the autumn of 2006, but the total development will number just over 50 different units when finished. Apartments will typically retail for about 850,000 pounds and are expected to be taken by wealthy individuals who are looking for that ideal weekend 'bolthole'.
With its expanding operations, Oakdene's average size of site has grown which in itself requires more working capital although it also serves to enhance profitability. Historically the company has a profit bias towards the second half with one third of profits being taken in the first half at present, but by year end 2009, the company hopes that it will have a more balanced profit split. The company aims to be selling, within two years, 300 units annually at an average selling price of around 250,000 pounds.
Longer term plans include expansion further West - the company is already establishing a division based in Hampshire at Southampton. An improving transport infrastructure and the availability of cheaper land makes this an obvious move for Oakdene and we would expect to see a significant portion of the recent funds raised re-invested in this region.