Taylor Wimpey eyes land buys after raising £522m
Company wants to acquire cheap land
Taylor Wimpey has raised £522m from a placing of shares, subscription and retail offer announced on Wednesday night, at 145p a share and it is expected to make a move to acquire land.
The housebuilder said competition for land had eased because smaller and medium-sized builders are constrained by “weaker balance sheets and reduced cashflows”.
Taylor Wimpey said that it had identified short-term opportunities to buy land from a range of sources at attractive returns and prices below lockdown levels. Terms have been agreed on 25 sites and the builder is in talks to acquire a further 60.
It added that it would return funds it had accepted from the government’s furlough scheme.
“We have taken decisive and early action to conserve cash and increase flexibility through the pandemic and we are now seeing a significant opportunity to invest in land at attractive prices,” said chief executive Pete Redfern.
All of the directors subscribed for the placing which raised £515m.