TELFORD Homes has extended its reach in north and east London with its £22.97m purchase of United House Developments’ (UHD) regeneration business.
The business, which was previously owned by United House Group Holdings, consists of a group of companies with “various interests in four significant development opportunities” in the area.
These sites are City North, adjacent to Finsbury Park Tube station, the refurbishment of the Balfron Tower in Poplar, two phases of development at Gallions Quarter near Royal Albert Dock, and the regeneration of Chrisp Street Market in Poplar, the largest of the developments which will include several hundred homes.
According to Telford: “The developments are all at various stages in the planning process but they have the combined potential to add some £500m to the group’s existing £1bn development pipeline.”
Jon Di-Stefano, chief executive of Telford Homes, said: “The four exciting developments being acquired are in locations where housing demand remains strong and we look forward to working with the various partners already involved in the schemes.
The deal was entirely funded from Telford’s existing cash resources.
Meanwhile, the investment required for the developments will be funded through a combination of the group’s existing cash and a £180m loan facility that is currently set to run until March 2019.
Analysts at Shore Capital said: “This adds significantly to what was already high visibility of future revenues, keeps up the high quality of future revenues and shows a significant new profile to land buying through the effective creation of a strategic land bank.”