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 拢8.05m to a housing association after installing all the foundations for the units to be constructed. Inland Partnerships simultaneously signed an 拢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 拢1.57m, and entered into a construction contract to build the 28 units for a further 拢3.1m.
Inland Partnerships also now has a 拢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. 鈥淓ntering into such transactions has several benefits for the group,鈥� the company said. 鈥淔irst, 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.
鈥淪econdly, 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.
鈥淔inally, 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."
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