Inland Homes forms joint venture on Cheshunt regeneration

Brownfield regeneration specialist and housebuilder Inland Homes announced on Wednesday the unconditional purchase of a substantial regeneration project in Cheshunt, Hertfordshire.

The AIM-traded firm said contracts have been exchanged by a 50-50 joint venture with an unnamed partner, on a site of around 13 acres - which includes the former Tesco head office - with the transaction completing in mid-August.

Inland said the site is situated just outside the M25 to the north of London, is 27 minutes from Liverpool Street station by train, and is fully aligned with its strategic objectives and skill set.

The 13 acres forms part of a wider 20 acre site that is expected to be selected as the planned location for a major new urban village of up to 1,000 homes, the company claimed, with the associated employment opportunities and extensive community facilities.

Inland said the land purchase is being funded by £5m of equity from each joint venture party, with the balance to be financed by a bank loan facility which has already been credit approved.

The company will guarantee, subject to an agreed liability cap, certain interest payments under the terms of the bank loan.

All profits will be distributed by the joint venture in proportion to each party’s shareholding in the project, with Inland Homes acting as operator to the joint venture, which is jointly managed by both parties.

“This is an important acquisition of a prime, well-located site where the local authority is supportive of regeneration and where Inland Homes can bring its considerable experience to bear to potentially create a new exciting and well-planned urban village,” said Inland Homes CEO Stephen Wicks.

“Cheshunt fits all our location requirements, situated close to junction 25 of the M25 and having a fast mainline train service to London Liverpool Street station, as well as being on the route of the proposed Crossrail 2.”

Wicks said that in the two weeks since the EU referendum, the company has continued to see the same level of appetite from potential purchasers for the homes, which are at the more affordable end of the housing spectrum and are supported by the current low interest rate and the Help to Buy scheme.

“While we are vigilant to the wider market landscape, we will continue to seek opportunities that meet our strategic objectives, such as this acquisition in Cheshunt which is a long term project in a strong location and benefits from local political support.”