TELFORD Homes yesterday raised £20m through a share placing as the London-focused housebuilder looks to speed up developments and cash in on demand for new homes in the capital.
The junior stock market listed firm placed the new shares at 250p, an 0.8 per cent discount to Tuesday’s closing price of 252p.
Jon Di-Stefano, chief executive, said that together with its bank facility, which was extended in April, the funds raised would effectively give the company £50m to spend on future developments.
“The long term fundamental of the London market is that there aren’t enough homes and that is not going to be corrected in short order. We felt it was the right time to increase our output and accelerate our own growth,” he said.
He said the group would double its output to up to 1,000 homes a year and said it has already set its sights on several potential schemes.
Telford said the placing, arranged by Shore Capital, was significantly subscribed and attracted a number of new investors, helping to increase liquidity in the company.
The placing comes after Telford announced last month that profits had trebled last year to £9m thanks to exceptionally strong demand.