Housebuilder Taylor Wimpey has raised £522m in a share placing that its board says will give it scope to make new land investments as prices fall post-pandemic.
The company announced the deal after the close of the market on Wednesday and confirmed its completion this morning. It placed 355,000,000 new shares at 145p each in a transaction run by Citi and Credit Suisse to raise an initial £515m, including a £45m investment from existing investor Blackrock.
Further shares were issued to directors, employees and retail investors.
Having agreed 12 site acquisitions in “recent weeks”, the company said it has now agreed terms on a further 13 sites and has a list of 60 more under discussion.
Announcing the launch of the deal, chief executive Pete Redfern said: “We have taken decisive and early action to conserve cash and increase flexibility through the Covid-19 pandemic and we are now seeing a significant opportunity to invest in land at attractive prices…
“We have seen robust demand for our homes throughout the lockdown period and have been encouraged by the continued resilience of the housing market as we have returned to our developments.”
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