Inland Homes makes two land sales to help pay down debt

The AIM-traded firm said the proceeds would be used to drive a further reduction in the group's net debt - one of its strategic priorities.

In Staines, the company said it sold the former telephone exchange on Elmsleigh Road to a private housebuilder.

The group achieved planning consent for 206 homes on the site in January.

Inland said the Staines scheme, which has an estimated gross development value of £65m, was part of its asset management division in which it identifies sites on behalf of investors and uses its land and planning expertise to secure planning approval on their behalf.

“This is a high-growth arm of the Group which generates substantial service revenues with significantly reduced investment and capital consumption,” the board said in its statement.

In Basildon, meanwhile, Inland said the sale of the third phase of Gardiners Park Village, which consists of 74 units, was also to a private housebuilder, with an estimated gross development value of £27.5m.

The group achieved planning consent at Gardiners Park Village in October for a residential-led mixed-use scheme of up to 700 homes and 25,000 square metres of commercial space.

It said the scheme was being delivered through a public-private partnership approach with government body Homes England.

Inland signed a development agreement in 2020 with Homes England - which has a majority interest in the site - with the body acquiring the land in phases over a five-year period.

As the masterplan developer, Inland Homes said it would deliver new and upgraded infrastructure and services within the site, including upgrading highways and relocating sports facilities.

“We are delighted to have achieved these two land sales following receipt of planning consent,” said chief executive officer Stephen Wicks.

“Demand for our quality land assets remains strong, with Inland owning and managing a land portfolio which is attractive to private housebuilders, affordable housing providers and build-to-rent operators.

“In line with our strategy, we will seek to maximise value from our land bank, with the fees and funds generated being used to further reduce the group's net debt.”

At 1239 BST, shares in Inland Homes were down 5.64% at 41.52p.