Telford Homes' JV exchanges contracts on Phase 1 open market dwellings

Telford Homes' shares are up more than 1% after joint venture Chobham Farm LLP exchanged contracts for the sale of the first phase of open market homes at New Garden Quarter, in east London, to Folio London Ltd.

Folio London was a subsidiary of Notting Hill Housing Group, which was Telford's joint venture partner in Chobham Farm LLP.

The contract with Folio London was the group's fourth significant build-to-rent transaction to date and involved the sale of 112 of the 297 open market homes at New Garden Quarter for a net cash consideration of £53.7m.

Telford said the development was underway and completion of the build-to-rent homes was anticipated in 2018.

"The remaining open market units, which form the second phase, are expected to complete in 2019 and will be launched at a later stage from the Group's Sales and Marketing Suite in Stratford," said Telford.

It added that the sale was on a forward-funded basis and would comprise an initial upfront payment followed by regular payments throughout the remaining construction period.

"As a result of this transaction the joint venture will no longer require any external debt finance for the entire New Garden Quarter development which saves significant anticipated funding costs and reduces the Group's longer term gearing requirements."

At 11:01 GMT, shares in AIM-traded Telford were up 1.16% to 349.5p each.