Posts Tagged ‘Telford Home’

Telford Homes expands into affordable housing

Wednesday, April 22nd, 2009

East London residential property developer Telford Homes announced it is expanding into affordable housing as difficult housing market conditions continue.

Telford said it has “worked to position Telford Homes for the economic downturn and has taken steps to reduce the impact of this downturn on the business.”

It has agreed a £57m grant with the Homes and Communities Agency and is in advanced negotiations with its housing association partners to construct developments entirely for affordable housing.

Chief executive Andrew Wiseman commented, “The strong partnerships which the company has with a number of housing associations and the grant programme agreed with the HCA mean that, to a certain degree, we are able to shelter the company from the lack of activity and confidence in the private residential market.”

“The board will focus on these relationships to achieve security of cash inflows before embarking on construction and will continue to ensure that the company is adapting to current economic conditions.”

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Telford Homes amends covenants; to get HCA grant

Wednesday, April 22nd, 2009

* Agrees with HCA for 57 mln stg grant program

* To invest in land to protect cash flow

* To write down value of land in FY results

* Says market conditions hit mortgage finance

* Shares rise as much as 14.7 pct (Adds details)

April 20 (Reuters) – British residential property developer Telford Homes Plc (TELF.L) said on Monday it had concluded talks with all of its banks to renew loans and extend all banking facilities with amended covenants.

Telford also said it had agreed for a 57 million pounds ($84.33 million) grant programme with the Homes and Communities Agency (HCA) across seven developments to part finance over 400 affordable homes over the next three years.

The company said although open market completions continued at a steady pace, there were delays resulting in some contract failures, and that it had contingency plans to cut the cash impact of failed completions.

For the year to March 31, Telford expects to write down the value of land and work on a restricted number of developments due to the continued decline in property values.

The company, which specialises in regeneration projects and affordable homes in East London, said the current market conditions had impacted the availability and cost of mortgage finance, which was affecting the rate of new sales and in achieving legal completions on open market homes.

“Telford Homes has only invested in land which results in cash neutral and risk-free development such as the construction of affordable housing,” it said in a statement.

The partnerships with several housing associations and the grant programme will shelter Telford, to a certain degree, from the lack of activity and confidence in the private residential market, it said.

Telford Homes shares were up 13 percent at 50 pence at 0733 GMT on the London Stock Exchange. ($1=.6759 Pound) (Reporting by Srikanth Srinivasa in Bangalore; Editing by Gopakumar Warrier)

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