Telford Homes Share Discussion Threads

[tudes100] 10/8/2018 09:17

Thanks HOW, appreciate the response

[hillofwad] 10/8/2018 09:06

Nocton

No that's not the case during 2012 -2016 the majority of their buyers were individual domestic and foreign investors .Read back though their Annual Reports where they have analysed their buyer profiles .They were cheap as they bought off plan 2 years + in advance of completion Those who bought Stratford Plaza for example doubled their money and 50% gains on the early sales at Sratopshere

Many were bought by speculators.
It;s only recently that this has all changed as the Help 2 Buyer has picked up the slack of the departing individual investor . Now they are targeting the institutional BTR buyer.Good news to arrive shortly

TEF adapt very quickly to changing market conditions

[hillofwad] 10/8/2018 08:56

Tudes - Unfortunately they have not released the others on their website yet no doubt will appear when they make some inroads into those shown as available . You will also note that they have bannered 66% sold which means 33/34% left.There are a total of 105 private homes

The good news about this development despite the current lack of sales .it was a site (former office building)bought relatively cheaply unconditionally sometime ago and it has enjoyed plenty of HPI since

They can afford to chip the prices and will still be way above original target

[nocton] 10/8/2018 08:53

"TEF have relied heavily on the individual BTR investor"
How do you know that they are BTR investors? TEF info has always implied to me that they have been selling mostly to ordinary house buyers. Surely most BTR investors go for cheaper houses/flats?

[tudes100] 10/8/2018 08:27

where did you get the info about the 1 sale HOW ? According to the PR they released 35 new 'homes' at the end of June. I can only see 13 available ?

[hillofwad] 10/8/2018 06:49

Not The Dr. Smith mentioned here then?



TEF have relied heavily on the individual BTR investor walking into a hotel room in Canary Wharf , a quick shuftie at some plans and hand over a reservation deposit 2 years in advance of completion .That will do nicely.

JLL .the agents must look back fondly at those days .


The fundamental change clearly evident at the Liberty Building launched over 2 years ago pre-Brexit where 66% were cleared off the boards at the initial launch

Since the recent launch having absorbed 2 years of pent up demand to tap into has produced 1 solitary sale

hxxp://www.telfordhomes.london/microsites/liberty-building/availability.cfm

[nocton] 09/8/2018 18:49

The operative word is 'could'. It's just speculation from those who have a vested interest in seeing higher prices. What is not mentioned is that for every seller there is a buyer and fewer buy-to-let buyers means more first time house buyers = fewer renters.

[shaker44] 09/8/2018 11:03

michael gove without hair??!!

[dr_smith] 09/8/2018 10:41

Thank-you for your nomination speedsgh.
Well.. I would probably accept that role, except:
1) Now retired
2) I am bald, ergo have no hair to pull out when dealing with the reluctant.
3) I used to be a camera man (video producer) and know that rather than be in front doing Boris quotes, I am best behind the camera. Being technical and non-handsome I know my place. ;-)

[speedsgh] 09/8/2018 09:44

@DR_SMITH - Well said. Regrettably common sense or doing what's best for the greater good are not commodities that appear to come naturally to politicians. Far too many party/personal interests to lure them off the path. I'm happy to back your nomination as the next Housing Minister ;o)

[dr_smith] 09/8/2018 09:09

I found this interesting.
"Supply shortage could push rents up 15% says RICS"


"John Healey said: "It's staggering that Conservative ministers still have no answer to the increasing pressures private renters face.

"Labour in government will fix this broken market with bold new rights for renters including an end to no fault evictions and controls on rents."

That action would make being a landlord (corporate or otherwise) less attractive and further diminish the supply of rented property.

Both governments seem to miss the stark fact that a shortage of supply (be it o/o or rented) for an expanding population needs more to be built. Offering tax breaks and incentives for those that are built does not influence the volume of supply.
IMO :-)

[clarea] 02/8/2018 17:35

Thanks Hillofwad for the reply

[dr_smith] 31/7/2018 11:04

Hillofwad.
Thank-you. I like your Battleship analogy...
...and these days they are built to navigate shallower waters, so seemingly quite apt.

[jurgenklopp] 31/7/2018 10:04

............... and a relatively big purchase of shares at 412.5p a few minutes ago.

;o)

[hillofwad] 31/7/2018 06:35

Certainly the BTR market are going to have ample opportunity to pick up the slack created by the vanishing individual private investor

[hillofwad] 31/7/2018 05:55

DR SMITH

The institutions have been given every encouragement to enter the BTR market to fill the gap left behind by the departing private investor. Seen as responsible landlords.

They are a bit like battleships slow to get out of the harbour but once doing so set sail full steam with big chunks of money allocated . Also will be slow to turn around too if they find out the expected returns on capital fail to materialise if experiencing rental voids
That has yet to be established as it's early days
Student accomodation for grown ups !

The good news for TEF is that they only want to partner with the very best and TEF certainly tick all those boxes.Happily pay the little extra margin for reducing the risks.
The very fact that Savills have been appointed to sort the wheat out from the chaff underpins this. Suspect that TEF will secure a £1bn fighting fund

[hillofwad] 30/7/2018 20:55

DEBT . Well they are gung ho on site on a number of developments .As a general rule of thumb with a mixed blend of apartments work on construction costs of £160k per apartment and it soon adds up. Throw in a couple of £34m sites like Equipment Works and it has soon gone.

However about £70m is coming back in through the door from completions at Stratford Central currently taking place from now util October .Hopefully there is a piece of string attaching to the £34m on Equipment Works which will haul it back in when they hopefully do the deal with a BTR face.

It's an expensive game and fair play to Katie the FD she juggles all the balls very well!

[clarea] 30/7/2018 20:16

Hi just noticed net debt has shot up past 100 mil what was the reasoning behind this ?
Thanks

[dr_smith] 18/7/2018 10:56

Thank-you V11SLR.
It both informs and fogs ;-)
These things are always complex.
TEF having partners building to rent implies there is a worthwhile return, and renting is on the increase, but with higher taxes & SDLT for landlords(maybe) and I believe a possible cap or new rules on landlords increasing rent, I don't know where the buy to rent market lies...despite reading most media. Is it a good earner for these corporeate landlords or merely a slow and steady, low risk, low return, long term home for funds to balance higher risk/rewards in other sectors?

[v11slr] 18/7/2018 10:02

DR_SMITH - this is worth reading.

A few weeks ago the way companies like Greystar minimise SDLT was explained to me, lots to do with the timing of valuations I think, can't remember the details now.

[dr_smith] 18/7/2018 09:49

Extract:
“Meanwhile, purchases in the buy-to-let market continue to be constrained by recent regulatory and tax changes, the full impact of which have yet to be fully felt.”
"The figures suggest changes to stamp duty introduced by the government in April 2016 are cooling on the buy-to-let market. Anyone buying a second home for any reason now has to pay a higher rate of stamp duty than someone buying a property that will be their main home."

Given that there is a current increase to tenanted homes, rather than o/o, I was surprised BTL is down. Yes higher tax, so where do these extra "lt/rented" homes come from.

TEF are proving some via their big partners, so I wonder:
1) Does a company with a large property to rent portfolio do better than the likes of 2nd home renters tax/overhead wise.
Do the corporate accounts allow for a higher return?

2) If say an insurance company pays for land and for TEF to build, do they still pay stamp duty? It will be paid for on land acquisiton, presumably only a fraction of the signed off asset, so maybe this is a sizeable cost saving and a prime motivator to get likes of TEF to build for them.

[cerrito] 12/7/2018 19:20

surprised at the number of votes against the remuneration package

[cerrito] 12/7/2018 11:45

I cannot make the AGM today and appreciate feedback from anyone there.

[thamestrader] 12/7/2018 11:16

Just for the record.....

Telford Homes Plc (AIM:TEF), the London focused residential property developer, will hold its Annual General Meeting ('AGM') at 12.30pm today at Telford House, Queensgate, Britannia Road, Waltham Cross, Hertfordshire EN8 7TF. At the AGM the Chief Executive of Telford Homes, Jon Di-Stefano, will make the following statement:


"I am pleased to report that since our final results on 30 May 2018, Telford Homes has continued to perform well. The London housing market at our typical price point has remained robust, with ongoing demand from a broad base of customers. The average price of the open market homes within our development pipeline is £539,000 and we expect that to remain relatively constant in the future. Our homes priced below £600,000 continue to sell at a steady rate. Above that level we have to work harder with prospective customers, but nevertheless we are still securing sales in line with our forecasts.

Forward selling continues to be a core part of our business model through early open market sales launches and forward funded build to rent developments. This approach reduces risk whilst increasing visibility over profit recognition and cash inflows. Combined with our average price point, this will help to insulate Telford Homes against any short to medium term volatility in the London housing market.

Over the past three years we have made strong progress in the build to rent sector which now forms a significant part of our future growth strategy. Our activity in this burgeoning sector is helping to increase the scale of the business and will enable us to build on our substantial development pipeline of over 4,000 homes. I am pleased to report that we have commenced contractual negotiations for the sale of 257 homes at Equipment Works in Walthamstow, E17 with a significant build to rent investor. Having purchased the site in December 2017, the Group began the formal sale process in April 2018 and received interest from a large number of investors. We expect to proceed to exchange of contracts in the next few months.

We continue to appraise a number of new build to rent opportunities as we look to strengthen our reputation as one of London's leading developers in the sector. We have previously reported the possibility of forming a longer term partnership with at least one investor and we continue to believe this will be the most productive way of delivering increased build to rent development in the future. We are determined to find the right investor to fit with our London focus and with a long term commitment to the sector. Therefore, we have instructed Savills to assist us in this process and we expect to make significant progress before the end of 2018.

The Board remains confident that the imbalance between supply and need for new homes at our typical price point in London will underpin our future growth. We remain well placed to achieve our stated goal of exceeding £50 million of total pre-tax profit for the year to 31 March 2019, weighted towards the second half as in previous years. Our position as one of the leading developers in London will be further enhanced by our increasing activity in the build to rent sector and the continued success of Telford Homes will enable us to deliver consistent returns to our shareholders."