Berkeley Talk of Major Sites in London and Home Counties

House Builder Berkeley Group published and Interim Statement this week with a lot talk of land purchases some of which were discussed previously in this blog back in December see our post Berkeley Group Increases Landbank details in the statement about the land deals are given below:

The Berkeley Group Holdings plc

Interim Management Statement

Period from 1 November 2010 to 28 February 2011

18 March 2011
The Berkeley Group Holdings plc (“Berkeley”) today announces its Interim Management Statement in respect of the period from 1 November 2010 to 28 February 2011.
Overall sales reservations achieved in the period were some 25% ahead of the comparable period last year and cancellation rates are at historically low levels.  The average numbers of visitors per site since the beginning of the year has been consistent with the same period last year, reflecting the current mortgage market conditions, with an increase in the number of outlets leading to the higher levels of sales overall…..
In the period, Berkeley has acquired a further 1,000 plots across 8 new sites bringing the total number of plots acquired in the year to 3,500 across 21 sites.  These include: a site in the City with an existing planning consent for some 750 new homes, a 337-bed hotel, 601 student bedrooms and 100,000 sqft of commercial space; a site in Kensington acquired by St Edward (our joint venture with Prudential) in close proximity to the existing 375 Kensington High Street development; and a number of sites in the Southern Home Counties and Oxfordshire for up to 20 homes each.
Berkeley has also obtained planning on two of its key London development sites in the period.  A planning consent for 752 homes and 140,000 sqft of recreational and commercial space which will include a hotel, gym, spa, bars and restaurants has been received at Tideway Wharf in the heart of the Nine Elms Regeneration Area and a planning consent for One Tower Bridge, a site jointly owned with the London Borough of Southwark, has been obtained for 400 homes, along with 90,000 sqft of cultural and retail space.  In addition, in February 2011, Berkeley announced an agreement to build a new station for Crossrail at its site at Royal Arsenal which will facilitate the delivery of 4,500 new homes and represents a major investment in the regeneration and infrastructure of the area.
 

A full copy of the statement from Berkeley Group can be obtained from their website http://www.berkeleygroup.co.uk/investor-information

If you are a house builder and need assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Berkeley Homes then contact Andrew Fella at Onyx Construction Consultants Ltd. Tel:01473 743682 or email andrew.fella@onyxconstruction.co.uk


 

Taylor Wimpey – Land Aquasitions Driven by Quality and Value

 

In a Final Results Statement issued by Taylor Wimpey this week, The company went in to some detail on how it had improved the quality of its Landbank.

Highlights and details below:

Taylor Wimpey plc

Results for the year ended 31 December 2010

Highlights

Land acquisitions driven by quality and value

– UK short-term land portfolio in excess of 6 years’ supply

– Over 8 years’ supply of strategic land

Continued focus on operational improvement

– Replanning successfully achieved on 63% of suitable sites

– Close engagement with government on Localism Bill and future planning policy

 

Selecting land

 

We have a Landbank with planning consent that is equivalent to more than six years of completions at current levels and a further 77,060 plots in our strategic landbank. We view this as an investment portfolio that we manage actively to create value for shareholders.

 Looking back over the last housing market cycle in the UK, it is clear that the industry shifted towards a strategy of growing profits through growing volumes as the market picked up from the mid-1990s through to 2007. This led to land strategies based on achieving volume targets and increased the risks inherent in a cyclical business. The strength of our existing land portfolio enables us to target our activity in the land market to only the best opportunities. We continue to be highly selective with regard to the types of sites that we buy, in terms of location, product mix, anticipated returns and level of risk. We undertake a series of thorough reviews of each opportunity at all levels during the acquisition process. Only those opportunities that meet our requirements, including level of return on capital, operating profit and risk profile, are submitted for approval.

Having re-entered the land market during the second half of 2009, we remained active in 2010. We have seen an improvement in the availability of attractive opportunities during the second half of 2010 and have maintained our consistent, disciplined approach to land acquisition. During the year, we have approved a total of 8,713 new plots on 86 new sites with limited use of deferred payment terms (2009: 3,003 plots on 22 sites).

Our UK short term land portfolio, representing owned or controlled land with planning, or a resolution to grant planning, stood at 63,556 plots at 31 December 2010 (2009: 66,089 plots). The average cost per plot in the land portfolio was £31k at 31 December 2010 on the basis of allocating all net realisable value provisions against land value (2009: £30k).

We plan to retain our national coverage, selecting the best opportunities in each region to deliver the best returns. Our current land strategy is weighted towards both the south and houses. However, we believe that a long term strategy with a sensible mix of sites for all consumer groups, including first time buyers, and in all areas where there is significant housing need will deliver long term returns.

We continue to promote our strategic land through the planning process …

22% of our short term land portfolio was originally sourced without a planning consent and we expect to deliver further planning consents from our strategic portfolio during 2011. At the end of 2010, 55% of the land within our short term landbank was fully consented (2009: 57%), which compares favourably with long term averages.

A full copy of the statement from Taylor Wimpey can be obtained from their website http://www.taylorwimpeyplc.com/ or the following link Statement Report

Onyx Construction Consultants are pleased to count Taylor Wimpey as one of its valued clients working with its Bury St Edmunds, Milton Keynes and Borehamwood offices and glad to see that they are doing very well in the current market conditions.

If you are a house builder and need assistance with your commercial needs or a subcontractor looking for an introduction to major house builders then contact Andrew Fella at Onyx Construction Consultants Ltd



Improved Quality Landbank Puts Redrow in Good Shape for Continued Progress

In a Trading Statement issued by Redrow Homes the Chairman talks about being in good shape to continue progress with an improved quality landbank of 13,140 plots.

Redrow Plc swung to an £8.5m pre-tax profit in the first half from a previous £8.7m loss on the back of an increase in revenue and margins.

Revenue for the six months to December was up 15% to £216.1m from the previous £187.2m, despite difficult market conditions.

Average private selling prices rose by 16% to £170,500 from £147,300.

Gross margin increased to 13.4% from 7.2% as a result of both volumes and average selling prices increasing.

The group’s operating profit of £12.1m represented an operating margin of 5.6% and compared with a 2010 loss of £1.6m.

Net debt at the period end was £51.5m, up from £49.3m a year earlier, with gearing rising to 12% from 11%.

Redrow said its New Heritage Collection was proving a great success. The average New Heritage Collection private selling price was £196,000, 7% higher than equivalent homes in the previous Signature range.

The group had a half-year landbank of 13,140 plots, against the June level of 13,170.

Chairman Steve Morgan said, ‘In spite of the challenging conditions, Redrow’s decision to return to our traditional values with the introduction of the New Heritage Collection proved to be a great success for the business.’

‘While it is still too early to call the spring market the second half has started encouragingly with reservations during the first six weeks comfortably ahead of the same period last year…

‘Given the improved quality of our land bank, the roll out of the New Heritage Collection and the unquestionable housing shortage, I feel that Redrow is in good shape to continue to make progress.’

A full copy of the statement from Redrow Homes can be obtained from their website http://www.redrowplc.co.uk/corporate or the following link Statement Report

If you are a house builder and need assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Redrow Homes then contact Andrew Fella at Onyx Construction Consultants Ltd 0n 01473 743682

Bovis adds 3,700 Plots to its Land Bank with Terms Agreed on Further 2,500 Plots

More good news from another House Builder – Bovis who issued their trading update today.

A full copy of the Statement can be seen by following the links at the bottom of this post but the high lights on its land / site purchases and housing stock are posted below details regarding its trading figures and profit can be seen on our Onyx Consultants blog site:

Trading update January 2011, 14 January 2011

Overview

Bovis Homes Group PLC is today issuing the following trading update ahead of reporting its preliminary results for the year ended 31 December 2010 on Monday 14 March 2011.

The Group has achieved a significant improvement in profits in 2010 and has made strong progress in implementing its land investment strategy.

Strong balance sheet; land acquisitions to fuel growth

The cash position of the Group as at 31 December 2010 remained strong, with net cash of £52 million, having started 2010 with £113 million of net cash. The overall cash outflow was contributed to by payments during the year of c.£138 million relating to land investment, with strong operating cash inflows pre-land expenditure of c.£93 million.

The Group has outlined its growth strategy to acquire good quality residential land which will provide an increase in sales outlets to support volume growth, and based on current market conditions will deliver growth in profits and improved financial returns. The Group has been successful in 2010 in acquiring consented land, adding c.3,700 plots to the land bank at a cost of £203 million and with a gross profit potential of £181 million. This land has been purchased based on acquisition appraisals using current day sales prices and costs and which generate financial returns in line with the Group’s investment ‘hurdle’ rates. The land acquired has been geographically focused with 80% of the plots in the South of England. Furthermore, the Group has terms agreed for the acquisition of an additional c.2,500 plots.

Commenting on the progress achieved in 2010, David Ritchie , Chief Executive of Bovis Homes, said:

“We are pleased with the positive Group performance in 2010 and remain confident of our growth strategy through the acquisition of good quality residential land at attractive rates, which will provide an increase in sales outlets to support volume growth. Based on current market conditions this will deliver growth in profits and improved financial returns which will add significantly to future shareholder value.”

A full copy of the statement from Bovis Homes can be obtained from their website http://www.bovishomesgroup.co.uk/information-on/press-releases/ or the following link Statement Report

If you are a house builder and need temporary assistance with your commercial requirements or a subcontractor looking for an introduction to major house builders such as Bovis Homes then contact Andrew Fella at Onyx Construction Consultants Ltd

Key Introduction Leads to Contract Award for Quinn Brickwork

Introduction Leads to Contract Award for Quinn Brickwork

Onyx Construction Consultants Limited are pleased to announce that another introduction made by them, between a valued contact at a Southern Area House Builder and one of their clients Quinn Brickwork Ltd. led to Quinn Brickwork securing a 19 unit site contract in Peterborough last month. In addition the House Builder having seen how Quinn Brickwork has performed with regards to programme and quality now wishes to negotiate the next phase of 24 units due to start shortly.

This introduction is only one of many made in the last 4 years between Onyx Construction Consultants specialist subcontractor clients and the many key placed contacts both business and personal that the directors of Onyx have at many of the House Builders, Contractors and Developers in the East Anglia and Northern Home Counties areas, leading to tenders being issued and contracts secured by our clients.

As part of the Onyx Construction Marketing service introductions to our many business and personal contacts in the industry will be made available to those subcontractors who sign up for the service and meet the criteria needed.

More details of contract awards resulting from our introductions both recent and past together with referral and recommendation letters will be posted soon on this the Onyx Construction Marketing blog and in the near future the Onyx Consultants Ltd website.

In the meantime if you feel that you would benefit from this service or know someone that will please contact us via email info@onyxconsultants.co.uk or contact Andrew Fella on 07798 640022.

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