INL.L Regulatory News (INL)

15 June 2016

Inland Homes plc

Inland Homes completes two land sales for £18.1m

Inland Homes plc (AIM: INL) ("Inland", the "Company" or, together with its subsidiaries, the "Group"), the leading brownfield regeneration specialist and housebuilder with a focus on the South East of England and outer London, announces the completion of two profitable land sales, together comprising 157 plots, for a combined total of £18.1 million. The price reflects a total profit on sale of £9.0 million, based on the combined book value of the land.

The Vale, in Acton, West London, which comprises 1.05 acres, has been sold to a major listed housebuilder. Inland acquired the site from Jewson Ltd in June 2014 and deployed its planning expertise to secure a resolution to grant consent for 95 apartments (including 35 affordable units) within 17 months of the acquisition date. In addition to the profits generated by the sale, operating income was also generated through the leaseback of the property to the vendor during the planning process.

Inland has also completed the sale of the 0.6 acre site at the former 'Ham and Blackbird' pub in Farnborough, Hampshire, to a small regional housebuilder. The Group secured planning permission for 62 apartments (including 11 affordable units) on appeal, having acquired the site in August 2015 and generated operating income through alternative uses in the interim.

In addition to the above disposals, the Company is pleased to confirm that forward sales of private homes, either reserved or contracted for sale, currently total £28.1 million. This reflects an average house price of c. £355,000, compared to an average selling price per unit of £325,000 as at 31 December 2015. The pipeline of demand for Inland's homes demonstrates the continuing strong interest in its high quality, but affordable offering of houses and apartments in strong growth locations.

Stephen Wicks, chief executive of Inland Homes, commented:

"These two transactions are the latest examples of our ability to identify keen opportunities in areas where there is growing demand for housing, creating significant value by successfully steering them through the planning process, whilst simultaneously generating income through flexible and active asset management. The appetite amongst our housebuilder customers for our well-located consented land means we have been able to undertake these disposals at an attractive margin. 

"In addition, the significant forward sales position of our growing house building operation underpins our continuing confidence in the outer London and Home Counties market, which is the focus of our operations."

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