Henry Boot PLC announces that its land promotion and planning business, Hallam Land Management (‘HLM’), has unconditionally exchanged contracts for the sale of 759 residential plots in Swindon to Vistry Group PLC (‘Vistry’), the national housebuilder.
Located in South Marston, Swindon, HLM secured an option to purchase the site over 20 years ago, and since then it has been promoting the land through the planning process, as part of a wider strategic land parcel working alongside Taylor Wimpey and Hannick Homes. In August 2021 outline planning consent was secured for a total of 2,380 residential plots across a 400-acre site, of which 1,063 relate to HLM’s site.
In December 2023, a contract was exchanged to acquire the land, which has recently completed, simultaneously exchanging to sell 759 plots to Vistry which will complete in two phases with the first in 2024 and the second in 2026.
In addition to enabling the delivery of new homes including over 500 affordable homes, the wider site will bring a number of additional community benefits to the local area as part of the planning consent. These include up to 26,900 sq ft of retail, food, service and business space, a new primary school and an extension to an existing school, as well as community and sport buildings, significant woodland planting, green infrastructure and children’s play spaces.
The transaction is expected to result in an ungeared internal rate of return for Henry Boot of 10% p.a. HLM will retain 304 plots for future sale.
Tim Roberts, CEO of Henry Boot PLC, commented: “While the housing industry has experienced slower sales rates over the past year, against what has been a challenging market backdrop, this sale further demonstrates the demand we continue to see for large, consented land parcels from major housebuilders who have a strategic long term requirement to deliver homes. At the same time there is an appetite for smaller premium sites in strong market locations. This disposal also underlines our team’s experience of taking large, complex sites through the planning system and ultimately selling them to housebuilders to both enable the delivery of much needed homes and community facilities across the U.K. and create shareholder value.”