Weston Homes agrees £100 million working capital extension
As the resurgence in UK house prices continues, leading London and Home Counties developer Weston Homes has today confirmed an extension to its current funding facilities through HSBC and Lloyds bank. The additional £100 million will be available up to 2018 and with the company expected to undertake developments totalling £1 billion (gross development value) over the next 4 to 5 years, it seems as though the company’s bankers have great confidence in the future.
At a time when some real estate developers around the world are struggling to arrange new financing agreements with their bankers, it seems that Weston Homes has a compelling story like many other UK developers. The company operates in the area of new residential and mixed use developments which offer a very compelling story in London and the south-east of England.
Weston Homes goes from strength to strength
While many of the U.K.’s leading developers have a history which goes back many years, Weston Homes is relatively young having been established in 1987 by chairman and managing director Bob Weston. He has obviously been one of the key components in the creation and the development of the business and seems to have very big plans for the future.
Quote from PropertyForum.com : “The UK property market is in effect two very separate markets with London and the rest of the UK often showing different levels of performance. We would be very interested to learn your opinion of the UK market at the moment and the prospects for the medium to long term.”
He was quoted as saying, “This extended banking facility further strengthens our business and places us in an excellent position to take advantage of the current buoyancy of the London and South East housing markets and new development opportunities.”, adding, “The housing market is cyclical and currently London and the Home Counties are enjoying a good recovery and upward turn. This is demonstrated by the strong pick up we have witnessed in both the volume and speed of sales that the business enjoys. This banking facility enables us to capitalise on this market.”
The company currently has turnover of circa £115 million per annum completing around 450 sales a year with an average price of £250,000. The group has developed and grown from its early years taking in array of different real estate sectors and types of development. However, it has always maintained its very strong links with London and the Home Counties areas preferring to stick to markets where it has experience and extensive knowledge.
Developments in the pipeline
At a time when the UK property market is coming under renewed focus, with many suggesting prices have moved too far too quickly, it is interesting to see that Weston Homes has already 70% forward sold its Stratford Riverside development in London. This is despite the fact it is not due for completion until 2016. The £60 million development has caught the attention of would be buyers and the company is well on target to forward sell all of the remaining apartments, duplexes and penthouses prior to completion.
The company is also active in the Edgware area with the Aura Project providing 189 apartments, offering up to 3 bedrooms, as well as new homes offering four and five bedrooms. This development also seems to have gone down very well with investors perfectly illustrating the renewed confidence shown by the company’s bankers, HSBC and Lloyds.