Bovis Homes Group PLC Completion of Stanton Cross Joint Venture (9139U)
April 03 2019 - 2:00AM
UK Regulatory
TIDMBVS
RNS Number : 9139U
Bovis Homes Group PLC
03 April 2019
3 April 2019
Bovis Homes Group PLC completes joint venture of Stanton Cross,
Wellingborough and delivers in excess of GBP250m from its balance
sheet optimisation initiatives
Bovis Homes Group PLC ('the Group') is pleased to announce the
completion of a 50:50 joint venture ('JV') with Riverside, one of
the UK's leading registered providers of social housing, for the
development of the new community at Stanton Cross, on the edge of
Wellingborough, Northamptonshire. This exciting new development
will deliver over 3,600 new homes together with leisure, retail and
office space, new schools, public parks and open spaces.
The first phase at Stanton Cross was successfully launched in
September 2018 with strong demand for the new homes. Bovis Homes
completed 22 units on the site in 2018 delivering a total of c.
GBP2m profit.
Bovis Homes Group has transferred gross assets totalling
GBP102.6m relating to the development, including land and work in
progress, into the JV. Consideration for these assets has been
satisfied with equity of GBP33.1m from each of the JV partners
alongside the existing GBP36.4m Homes England loan, also
transferred from Bovis Homes Limited into the JV. Bovis Homes Group
has realised a net cash benefit from the transaction of GBP69.5m
which will contribute towards our capital return plan of a total of
GBP180m or c. 134p per share to shareholders in the three years to
2020.
The Group set out a clear plan to optimise its balance sheet in
2017 and with the completion of this JV, has now achieved a total
of GBP253.5m from these initiatives, significantly exceeding the
GBP180m target. We will maintain a strong focus on active balance
sheet optimisation going forwards.
Greg Fitzgerald, Chief Executive of Bovis Homes Group,
commented:
"We are very pleased to have formed this partnership with
Riverside, one of the UK's leading providers of affordable housing
and look forward to creating this exciting new community at Stanton
Cross with them. We announced the development of our Partnership
Housing Division earlier this year, and this is a great example of
our land led strategy and working in partnership, in particular
with housing associations, on our larger developments."
For further information please contact:
Bovis Homes Group PLC
Earl Sibley, Group Finance Director
Susie Bell, Head of Investor Relations 01732 280272
Powerscourt
Justin Griffiths
Nick Dibden 020 7250 1446
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END
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