LONDON - Henry Boot PLC, a prominent UK property development and construction group, has announced the successful sale of 365 residential plots across two locations to Mulberry Homes and Taylor Wimpey (LON:TW), signaling continued momentum in its land promotion operations. The transactions are part of the group’s strategic efforts to address the housing shortage in the UK by providing well-located, permitted land for residential development.
The group’s land promotion and planning business, Hallam Land, finalized the sale of 75 residential plots in Ambrosden, Oxfordshire, to Mulberry Homes for £6.8 million. This sale delivers an ungeared internal rate of return (IRR) of 19% per annum for Henry Boot. The site, acquired in 2014, received outline planning consent in December 2023 for the development of 75 homes, along with a 12-acre community woodland, highway improvements, and a children’s play area. Hallam retains ownership of an adjacent 20.6-acre site for future development.
Additionally, Hallam completed the sale of 290 residential plots in Sittingbourne, Kent, to national housebuilder Taylor Wimpey. This transaction resulted in an impressive ungeared IRR of 40% per annum for Henry Boot. The site, under a promotion agreement since 2017, gained planning consent in July 2024 after an appeal. The development will include 290 homes, with 30% designated as affordable housing, and features such as new landscaping, habitat creation, and publicly accessible green spaces, achieving a 100% Biodiversity Net Gain.
Tim Roberts, CEO of Henry Boot, remarked on the significance of these sales, stating that they "reaffirm the continued success of our land promotion business," and highlighted the role of government planning reform in facilitating these transactions. He also emphasized the positive impact of the new homes and green infrastructure on the local communities.
The company is set to release a trading update for the twelve months ending December 31, 2024, on January 28, 2025. This news comes as part of Henry Boot’s broader operations, which include urban development, industrial, logistics, and residential markets, and a commitment to achieving Net Zero Carbon by 2030.
The information for this report is based on a press release statement from Henry Boot PLC.
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