Galliford Try plc, the housebuilding and construction group, said today that it had entered into agreements to acquire the 50% interest held by Bank of Scotland in its joint ventures undertaking residential development in the London area, taking Galliford Try's ownership to 100%, for a nominal sum.
The developments have a Gross Development Value of £154million. The joint ventures are Sentient Ventures Limited, Linden London LLP, Linden Homes Eastern Newhall Limited and Linden St Albans LLP.
The joint ventures are developing residential sites in Colchester, Harlow, Hammersmith and St Albans. They have a total estimated gross future development value of £154 million, comprising 742 plots with the present value of work in progress on site of £15 million. The effect of the transaction on Galliford Try is to provide a significant additional boost to its landbank of plots for development, at current market values, in line with the Company's strategy for expanding its housebuilding business following its rights issue in October 2009.
The consideration, which will be settled in cash from Galliford Try's existing resources, totals a nominal £4. The development loans provided to the joint ventures by Bank of Scotland will be settled by a cash payment of £42.5 million, financed from Galliford Try's existing facilities. In their most recent financial statements the total value of the gross assets of the joint ventures is £99.9 million and the loss attributable to those assets totals £4.9 million.
Greg Fitzgerald, Chief Executive of Galliford Try plc, commented:
"We are delighted to be able to acquire our partner's interest in our London joint ventures and to bring the entire benefit of their future development potential into the Group. This acquisition helps to drive our housebuilding expansion plans forward strongly and, with the acquisitions of Rosemullion Homes and the assets of Wright Homes completed in 2009, demonstrates our ability to bring attractive opportunities to fruition."
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