Recovering UK Economy sees London Developer Telford Homes Double Profits
The boom in the London housing market and the city’s expanding population has seen property developer Telford Homes more than double its profits in the last financial year.
The demand for homes in the capital boosted Telford’s pre-tax profits for the year to end of March to £19.2m compared to a figure of £9m last year.
The company also expects to double its profits again by 2018. Cumulative pre-tax profits for the next four years are set to exceed £120m.
Domestic buyers were the largest group of purchasers in the year to end of March, accounting for more than a third of Telford’s 515 home sales
Telford will start work in September on a block of flats in Stratford Central after securing forward sales worth £70m, pre-selling 148 of the 157 homes in just four weeks following a UK-exclusive sales launch of the project.
The project, also known as ‘Angel Lane’, is expected to be completed in the year to 31 March 2018, and marks the first time Telford has completed forward sales four financial years in advance.
Telford Homes is focuses on the development of up-and-coming locations in the inner-city, outside of the ever-more expensive market in London’s centre.
As well as the acquisition of two large sites in Stratford, which will see more than 500 homes developed in total, Telford now has sites in Hackney, Tower Hamlets, Camden, Islington, Lambeth, Southwark and Barnet.
Telford is known to sell about a third of its homes to international investors, but said fears of a housing bubble in London were overblown, and that the imbalance between supply and demand inevitably led to increasing.
The share of purchases from foreign investors actually fell from 39 percent to 32 percent year-on-year.
It also make clear that while mortgage finance was more readily available in a recovering economic climate, lenders had learnt from the financial crisis and not returned to the days of handing out high interest mortgages, saying applications are “still carefully policed” and not comparable to 2007.
Jon Di-Stefano, Chief Executive of Telford Homes, said: “I am delighted to be reporting another excellent year for Telford Homes resulting in an enhanced forward sold position, substantially improved margins and pre-tax profits more than doubling. Our development pipeline has increased to £875 million of future revenue, which is more than six times the revenue reported in the year to 31 March 2014”.
Winvic tops out first hotel project in Milton Keynes
A roof covering programme is now underway which will be followed by floor and ceiling curtain walling, and extensive glazing on the 13th floor, which will contain a sky bar, restaurant and public exhibition space.
Work on envelope and cladding will continue with the 30m high, LED-lit satin finish stainless steel circle on the eastern façade completing the external design. The ‘sun’ design will be visible up the city’s Midsomer Boulevard, which was created to align with the sun on the longest day of the year.
Winvic is currently fitting-out the 261 bedrooms, which has included the sailing and positioning of off-site fabricated bathroom pods. Fit-out of other facilities within the hotel will also continue, such as the 12,000 sq ft flexible conference floor that comprises adaptable meeting spaces and an external terrace that has been designed to be high load bearing. The project is expected to be handed over in July 2022.
Mark Jones, Winvic’s Head of Multi-room, said: “We started on site just two weeks after the first 2020 lockdown was announced and despite the unprecedented challenges, our team have hit milestone after milestone on, or ahead, of schedule. I’d like to say a huge thank you to them. Reaching the highest point of any multi-room project is always worth celebrating, but this is a bit more special as it’s Winvic’s first hotel," he said.
Winvic recently lifted eight railway bridge beams into place over the A5, 2km north of M1 J18. It is one of three bridges that Winvic is constructing for Prologis at DIRFT III in Northamptonshire, as part of a £29 million contract to deliver a new Intermodal Rail Freight Terminal.