Countryside Properties to float on London stock market

Housebuilder and urban regeneration partner Countryside Properties has announced its intention to float on the London Stock Exchange next month.

The Essex-based company, which expects to raise around £114m via the share sale, said it would use approximately £64m of the funds to reduce debt and the rest to accelerate growth in the development of its sites at Acton, Beaulieu, Hazel End and Rayleigh.

Chief executive Ian Sutcliffe said: “Over the last two years our focus has been on strengthening the group’s core businesses of Housebuilding and Partnerships and enhancing volumes and returns. Today we are delivering significant growth in the sector, have a truly differentiated business model and are providing strong returns.

"In both our businesses we are focused on place-making. In housebuilding, we are bringing strategically sourced land through the planning process in the South East. In Partnerships, now almost 50% of group revenue, we have 30 years’ experience and benefit from a low risk model with excellent returns.”

The group did not provide any details on its expected market capitalisation or the number of shares it would issue, but Bloomberg estimated its value at up to £1bn.

Countryside was a listed company traded on the London Stock Exchange from 1972 until 2005, when it was acquired by Copthorn Holdings, which was a joint venture between the Cherry family and Bank of Scotland.

Countryside’s announcement comes in the same week that housebuilders Barratt Developments and Taylor Wimpey both put out upbeat trading updates.