Bovis Homes Group PLC Completion of Stanton Cross Joint Venture (9139U)

TIDMBVS

RNS Number : 9139U

Bovis Homes Group PLC

03 April 2019

3 April 2019

Bovis Homes Group PLC completes joint venture of Stanton Cross, Wellingborough and delivers in excess of GBP250m from its balance sheet optimisation initiatives

Bovis Homes Group PLC ('the Group') is pleased to announce the completion of a 50:50 joint venture ('JV') with Riverside, one of the UK's leading registered providers of social housing, for the development of the new community at Stanton Cross, on the edge of Wellingborough, Northamptonshire. This exciting new development will deliver over 3,600 new homes together with leisure, retail and office space, new schools, public parks and open spaces.

The first phase at Stanton Cross was successfully launched in September 2018 with strong demand for the new homes. Bovis Homes completed 22 units on the site in 2018 delivering a total of c. GBP2m profit.

Bovis Homes Group has transferred gross assets totalling GBP102.6m relating to the development, including land and work in progress, into the JV. Consideration for these assets has been satisfied with equity of GBP33.1m from each of the JV partners alongside the existing GBP36.4m Homes England loan, also transferred from Bovis Homes Limited into the JV. Bovis Homes Group has realised a net cash benefit from the transaction of GBP69.5m which will contribute towards our capital return plan of a total of GBP180m or c. 134p per share to shareholders in the three years to 2020.

The Group set out a clear plan to optimise its balance sheet in 2017 and with the completion of this JV, has now achieved a total of GBP253.5m from these initiatives, significantly exceeding the GBP180m target. We will maintain a strong focus on active balance sheet optimisation going forwards.

Greg Fitzgerald, Chief Executive of Bovis Homes Group, commented:

"We are very pleased to have formed this partnership with Riverside, one of the UK's leading providers of affordable housing and look forward to creating this exciting new community at Stanton Cross with them. We announced the development of our Partnership Housing Division earlier this year, and this is a great example of our land led strategy and working in partnership, in particular with housing associations, on our larger developments."

For further information please contact:

 
Bovis Homes Group PLC 
 Earl Sibley, Group Finance Director 
 Susie Bell, Head of Investor Relations    01732 280272 
Powerscourt 
 Justin Griffiths 
 Nick Dibden                                020 7250 1446 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

JVEITMMTMBAMTAL

(END) Dow Jones Newswires

April 03, 2019 02:00 ET (06:00 GMT)