Henry Boot sells nearly 500 residential plots to Barratt subsidiary

16th Sep 2024 10:53

(Sharecast News) - Henry Boot announced on Monday that its land promotion and planning subsidiary Hallam Land has completed the sale of 491 residential plots at the Pickford Gate development in Coventry to David Wilson Homes, a division of Barratt Developments.

The London-listed firm said the transaction was a significant step toward Hallam Land's goal of selling 3,000 plots annually, and was expected to bolster the group's financial performance in 2024.

It said the sale achieved an ungeared internal rate of return (IRR) of 19.4% per annum.

Payments were scheduled over 2024 and 2025, and would include substantial recovery of infrastructure costs.

One of the key infrastructure projects was the construction of a new junction on the A45 dual carriageway, completed in April.

Funding for the project was partially secured through the Homes England Housing Infrastructure Fund.

Hallam Land started its involvement with the Pickford Gate site in 2015, when it secured a planning promotion agreement with the landowners.

A planning application was submitted in 2018, and by 2021, outline planning consent was granted for a comprehensive development.

The approved plan includes 2,400 homes - 25% of which were designated as 'affordable housing' - alongside 37 acres of employment land.

Additional amenities would comprise a primary school, district and local centres, green open spaces, community facilities, and playing fields.

It was the second major sale at Pickford Gate, following the disposal of 247 plots to Countryside Properties in March 2023.

With the latest transaction, Hallam Land retained 1,662 plots at the site for future sale or development.

"Our site sale to David Wilson Homes is a significant land transaction which will enable the delivery of quality homes in an area where people most need them," said chief executive officer Tim Roberts.

"The phased sale of plots at our wider Pickford Gate site is progressing according to plan, where thousands of homes will be created due to the expertise of our land promotion business, which can unlock potential in sites across the country by securing planning permission for residential and mixed uses."

Reporting by Josh White for Sharecast.com.