Retirement specialist acquires 11 site options as part of move into extra-care sector after six months with no sales
Wren Homes, the AIM-listed housebuilder that last month posted an interim loss after selling no homes, has acquired 11 site options for extra-care retirement schemes.
The retirement home specialist reported recently turnover of just £84,000 for the six months to 31 January, after failing to sell a single home. The turnover all came from a profit-share arrangement with another developer, and Wren made a loss of £393,970.
Chief executive Paul Treadaway said at the time that the company remained confident, with plans to move into the extra-care retirement sector. He also pointed out that seven of its 19 unsold homes were under reservation.
Today’s announcement shows that this confidence remains strong, with Wren’s acquisition for a nominal consideration of 11 sites for extra-care schemes. It already has one site under option.
Planning work is under way for the schemes, which range in size from 50 to 75 units each. If approval is granted then Wren can exercise its right to buy outright the 11 sites.
The sites, which are all in the South-east of England, include a 69-unit scheme in Chipstead and further schemes in Epsom, Oxted, Wallington, Crowborough, Tring, Haisham, Burpham, Kings Langley, Hilldenborough and Tonbridge.
Treadaway said: “This continued roll-out of extra-care schemes and our vision of delivering and leading the introduction of this new innovative model into the retirement home sector is particularly exciting and satisfying. Not only is it a sector that is significantly underdeveloped, but it is one that offers significant growth potential alongside good defensive qualities.”