INL.L Regulatory News (INL)

31 Jul 2007 07:01

Inland PLC31 July 2007 For Immediate Release 31 July 2007 Inland plc ("Inland" or the "Company") Trading Update Inland, which specialises in buying brownfield sites and enhances their value byobtaining planning permission, today announces the following trading updateahead of the Company's preliminary results for the year ended 30 June 2007,which will be announced on Monday 1st October 2007. Following the successful admission to AIM listing and £50 million (beforeexpenses) fundraising for the Company, the Group continues to make good progressin targeting brownfield opportunities in the South and South east of England.By listing Inland on AIM and strengthening the Company's balance sheet, ourvisibility within the marketplace particularly with land vendors and theiragents has been greatly enhanced. Land Acquisitions and Disposals In the period under review, Inland has successfully disposed of three sites inBeaconsfield, Bucks, Uxbridge, Middlesex and Northwood Middlesex all followingsuccessful identification of the development potential, negotiation of thepurchase and the subsequent grant of planning permission. The site in Northwoodwas of particular note having produced an average return on equity of circ.160%. These disposals confirm Inland's ability to unlock substantial returns in amarket that is perceived to be under pressure from rising interest rates and acomplex planning system that continues to deteriorate and frustrate the releaseof housing land in the U.K. Since the flotation of the Company, the Group has acquired or agreed terms topurchase 7 sites representing approximately 152 residential plots and25,000ft.sq. of office accommodation. This is in addition to the acquisition ofThe West Wing at Ashford & St Peters Hospital, Middlesex, upon which a detailedplanning application is shortly to be submitted for 170 apartments on the landconcerned. A planning application for 399 residential units and 95,000 sq ft of commercialspace has now been submitted on its flagship site in Farnborough, Hampshireafter extensive pre-planning consultation. Further applications will be made onthis site once certain matters have been resolved. Planning constraints Inland's management team has many years experience of successfully negotiatingthe labyrinth that has become the UK planning system. Whilst the system showslittle sign of improvement, the management team has a successful track record inobtaining planning consents and creating significant value for shareholders.The planning system continues to represent a major obstacle to meet the demandfor new housing which significantly outstrips the current supply. Corporate Activity Inland has recently announced an indicative offer of 6p per share for PooleInvestments plc ("Poole"). Poole's primary asset is a 9.5 acre site inHamworthy which would make an excellent addition to Inland's existing land bank. Poole sits firmly within our stated strategy of identifying and acquiringstrategic investments in quoted and unquoted companies. Outlook Despite a climate of rising interest rates and an over complicated planningsystem, there is still an acute shortage of land with planning permission,Inland continues to demonstrate its ability to identify opportunities and createvalue. With the current government committed to increasing house building from200,000 to 240,000 new homes a year by 2016, greater emphasis will be placed onurban regeneration and brownfield development. Inland's ability to secure asteady pipeline of new sites continues and our current land bank that is owned,controlled or where offers have been agreed comprise of 17 sites representingover 1,000 residential plots with a gross development value of approximately£250m. In addition we have commercial space within several schemes totalling120,000sq ft. The Board has confidence in Inland's ability to continue to generate significantreturns and increase underlying value and we believe the next 12 months shouldrepresent a further substantial period of growth. For further information please contact: Inland Plc Tel: 01923 713 600Stephen Wicks, Chief ExecutiveNishith Malde, Finance Director Buchanan Communications Tel: 020 7466 5000Jeremy Garcia / Susanna Gale About Inland plc Inland plc is a dynamic developer of urban regeneration projects around SouthernEngland. Predominantly specialising in brownfield developments, the Inland teamcan provide solutions to a variety of difficult and sensitive land situations. Inland successfully navigates the complex planning system, applying meticulousattention to detail throughout the design process whilst utilising its closeworking relationships with local authorities. Our ability to secure sites oftenoverlooked by others, means our track record in the development of brownfieldopportunities is second to none. Dawnay, Day Corporate Finance Limited is the Nominated Adviser. David Floyd andAlex Stanbury can be contacted on 020 7509 4570. This information is provided by RNS The company news service from the London Stock Exchange