You are viewing 1 of your 1 free articles
Vistry reports strong interest from housing associations despite COVID-19 disruption
Housebuilding giant Vistry Group has said it is seeing continued interest from housing associations over potential deals with its partnerships division, despite the COVID-19 crisis hitting other parts of the housebuilding sector.
In a trading update, Vistry Group said its partnerships arm, Vistry Partnerships, had a “strong start to the year, progressing its strategy of accelerating revenue growth and margin expansion through an increase in land-led contracting and mixed-tenure development”.
The group, which was formed in January when Bovis Homes acquired Galliford Try’s Linden Homes and Partnerships & Regeneration business, said: “Interest from housing associations and investors continues to be strong, and demand from private buyers is improving steadily.”
Despite the coronavirus outbreak, Vistry Partnerships’ development activity is continuing, with operations underway at 31 of its 34 sites. The builder said it is operating at over 70% of normal production capacity as its teams get used to the new operating procedures.
The organisation became one of the first major house builders to reopen sites in late March, after having to furlough staff and close sites during the pandemic.
READ MORE
Vistry Partnerships has set targets to build more than 6,000 homes per year and achieve revenues of £1bn.
In its housebuilding division, 119 out of a total 172 housebuilding developments are in operation, with this number expected to continue to increase
Over the past eight weeks it has taken 447 gross private reservations and the rate of sales has seen an improving trend, with a sales rate of 0.26 over the past three weeks.
Vistry Group said it remains “financially strong” with net debt of £476m and highlighted its eligibility for the Bank of England’s Covid Corporate Financing Facility (CCFF).
Greg Fitzgerald, chief executive of Vistry Group, said: “In these unprecedented times, the group’s performance during lockdown has been better than initially expected in respect of reservations, completions and cash management.
“The continued strength of Vistry Partnerships throughout the past two months has proven our rationale for the acquisition, which has given us a highly resilient business underpinned by significant demand for affordable homes.”
Since its formation, Vistry Group has agreed several joint ventures with housing associations to build thousands more affordable homes.
