Countryside Properties taps investors for £250m after lockdown
UK housebuilder Countryside Properties has tapped investors for £250m to strengthen its balance sheet following the coronavirus lockdown.
The developer said the funds will pay its revolving credit facility, which will then be used to invest £150m in its partnerships division as well as £100m to strengthen its current balance sheet position.
“The fundraising is expected to help cement Countryside’s strong market position in Partnerships in this high-return and long-term structural growth area,”Countryside said.
“The net proceeds from the placing, subscription and retail offer are expected to enable these growth initiatives to be undertaken sooner than would otherwise be possible without that funding.”
Countryside, which returned to construction activity from 11 May, completed 449 homes in the third quarter, down from 1,055 in the same period last year.
The housebuilder has now restarted construction at all of its sites, which are operating at around 85 per cent of capacity, and has opened two factories, it said in an update yesterday evening.
Countryside said its private sales levels “remained robust” as it operated virtually during the quarter until sales offices reopened on 1 June.
The company had a net reservation rate of 0.7 over the last four weeks, in line with its target range of 0.6 to 0.8, with “little change” seen in pricing from pre-coronavirus levels.
“The private for sale market has remained robust across the country with continuing government support from recent stamp duty changes, and the Help to Buy Scheme, which will be particularly beneficial for first time buyers who represent around half of our private purchasers,” it said.