14th Jul 2016 07:09
LONDON (Alliance News) - Residential property developer Telford Homes PLC on Thursday noted the "significant short-term uncertainty" coming from the UK's vote to leave the European Union and said, as it has no major sales launches until autumn, it will be monitoring transaction levels and pricing.
Telford Homes noted its forward sales currently exceed GBP640.0 million and has secured more than 50% of the cumulative revenue expected in the three financial years up to March 31, 2019.
This forward sold position has been boosted by the private rented sector sales of The Pavillions housing scheme in north London, sold in February, and the sale of its east London Carmen Street development in May, Telford said, noting that these sales have meant the GBP50.0 million placing funds raised in 2015 are "largely uncommitted".
Telford Homes said the vote for Brexit has created "significant short-term uncertainty and it is too early to predict how long that will last", but said, as it has no planned major sales launches until autumn, it will be monitoring other market activity as a barometer of transaction levels and pricing in the coming months.
On top of this, the property developer said it will continue to consider opportunities for further private rented sector sales, both on existing sites and potential land acquisitions, "assuming the financial dynamics of those transactions remain appropriate".
Yet, Telford Homes stressed there is a "chronic shortage of supply" for homes and "that will not change as a result of leaving the EU".
"The board also believes that London will not lose its attraction both as an international centre of finance or as a place where people want to live and work," the company said.
Shares in Telford Homes were up 1.7% at 299.19 pence on Thursday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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