Oaktree-backed housebuilder Countryside has announced plans to float on the stock market.
The Oaktree-backed housebuilder and regeneration developer plans to offer at least a 25% stake in the company, from which it expects to raise £114m.
Around £64m of the proceeds will be used to pay down group debt, with the remaining £50m used to “accelerate growth in the development” of sites in Acton, W3; Beaulieu, Hampshire; Hazel End, Herefordshire; and Rayleigh, Essex.
Oaktree, management and other shareholders will agree to retain an initial stake in the company following the float.
The offer is expected to complete next month.
Countryside’s housebuilding landbank totals 18,410 plots, of which 72.9% are controlled by option agreements or conditional contracts.
It is targeting 1,200 housing completions per year by the end of September 2018 for the housing division and a further 2,400 completions per year in the partnership division.
Ian Sutcliffe, group chief executive officer, said: “We have outstanding visibility to support our three-year plan of growing to more than 3,600 units per annum, with operating margins of more than 17% and return on capital employed of 28% for the group.”
