Housebuilder says 2012-linked regeneration provides good opportunity to build in east London
East London housebuilder Telford Homes has announced a £7.5m share placement to fund private development housing.
In a statement to the Stock Exchange this morning, it said: “In the context of the ongoing regeneration of parts of east London, enhanced by the 2012 Olympics, improving transport connections and a shortage of supply of new housing, the directors consider that the company should take advantage of opportunities to begin construction of homes for sale in the open market.”
The cash will enable it to fund open-market developments on two existing Telford sites that have affordable housing and a further four projects in partnership with EastendHomes, a stock transfer organisation.
The move follows Telford's purchase of Clifford Contracting last June in a deal that allowed it quick access to the £6m sitting on its balance sheet.
Cenkos Securities analyst Kevin Cammack said: “The placing price discount to last night's close of 17% is certainly keen, but in terms of giving some visibility and time-scale to Telford's recovery opportunity it is a smart move and worth supporting.”