Inland Partnerships has won several contracts to build housing on land sold by Inland Homes to housing associations.
In Southall, West London, Inland Homes has sold its Witley Gardens site for £8.05m to a housing association after installing all the foundations for the units to be constructed. Inland Partnerships simultaneously signed an £8.5m construction contract with the housing association to build out the 57 apartments on the site.
In Queensgate, Farnborough, Inland Homes sold a 28-unit parcel of land to a housing association for £1.57m, and entered into a construction contract to build the 28 units for a further £3.1m.
Inland Partnerships also now has a £29.5m contract with a housing association to build 136 housing units on a site formerly owned by Inland Homes in Alperton, in the London Borough of Brent.
Inland Partnerships has been specifically set up to build residential units for housing associations and other residential landlords. “Entering into such transactions has several benefits for the group,” the company said. “First, the sale of the land happens immediately, crystallising recognition of the land margin and generating a cash receipt which can be applied to reduce any associated borrowings.
“Secondly, the client pays for the construction on a monthly basis which funds the group's costs and enables the development to proceed without the group incurring additional borrowings.
“Finally, construction income provides a good counter balance to speculative housebuilding or lumpier land sales in terms of revenues, cash flow and return on capital employed.
Paul Brett, land director at Inland Homes, said: "The group has had an extremely productive six months, concluding a significant volume of profitable land and building transactions for the business."