
Telford Homes is a
housebuilding
Home construction or residential construction is the process of constructing a house, apartment building, or similar residential building generally referred to as a 'home' when giving consideration to the people who might now or someday reside t ...
company that specialises in developments in non-prime areas of London.
History
During December 2001, the company was
floated on the
Alternative Investment Market
AIM (formerly the Alternative Investment Market) is a sub-market of the London Stock Exchange that was launched on 19 June 1995 as a replacement to the previous Unlisted Securities Market, Unlisted Securities Market (USM) that had been in opera ...
, raising £4.4 million of investment in the process. Early on, the company largely focused its attention onto London's
East End. One particular center point of its development work during the 2000s was
Stratford, where the firm capitalised on a steep rise in house prices that were close to the site of the Olympics Park for the
2012 Olympic Games
The 2012 Summer Olympics, officially the Games of the XXX Olympiad and also known as London 2012, were an international multi-sport event held from 27 July to 12 August 2012 in London, England, United Kingdom. The first event, the ...
.
In the aftermath of the Olympics, Telford Homes continued to invest into Stratford locations.
The company was negatively impacted by the
Great Recession
The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009. , which caused a dip in house prices and Telford Homes' valuation to drop to 20p per share; however, it was not at risk of ceasing operations,
with a rise in profits being recorded during December 2008. The firm's response to the wider economic downturn was to refrain from investing into new land as well as decreasing the completion rate of its open market homes to a below-capacity rate;
an increased focus on
affordable housing
Affordable housing is housing which is deemed affordable to those with a household income at or below the median, as rated by the national government or a local government by a recognized housing affordability index. Most of the literature on ...
and selling to organisations such as
housing association
In Ireland and the United Kingdom, housing associations are private, Non-profit organization, non-profit organisations that provide low-cost "Public housing in the United Kingdom, social housing" for people in need of a home. Any budget surpl ...
s was also pursued.
Furthermore, the company was in a good enough fiscal position that it was able to purchase other companies as early as mid 2009. The firm continued to record profits during most years, such as a pre-tax profit of £7.3 million in 2010. During June 2011, Andrew Wiseman stepping down as chief executive of Telford Homes and subsequently became the firm's executive chairman while the business' former finance director Jon Di-Stefano was appointed as chief executive.
The mid-2010s were a particularly lucrative time for the company. In April 2012, it was reported that a better-than-expected pre-tax profit had been recorded amid increased sales and completions. During the summer of 2013, the firm issued eight million shares in order to raise roughly £20 million in funding for its development activities; later that same year, Telford Homes announced that its plan to double in size over the following five years. In May 2014, it was reported that year-on-year profits had roughly doubled. In 2015, Telford Homes' recorded a profit of £25.1 million, which was up tenfold from four years prior, while the firm's value had risen from £20 million to £250 million.
During 2015, roughly 85 per cent of the firm's customers were investors, roughly half of which were from overseas.
That same year, it purchased
United House Developments' interest in four London-based development sites in exchange for £23 million. During 2016, Telford Homes stated that its development pipeline had a value in excess of £1.5 billion.
In 2017, in response to high demand from people across London that were struggling to get on the
property ladder
The term property ladder—or housing ladder—, widely used in the United Kingdom, describes the relative differences in constant terms from cheaper to more expensive housing.
According to this metaphor, an individual or a family can progress ...
, the firm announced that it would orientate towards building additional homes for the rental market rather than owner-occupier properties.
During April 2018, it was reported that Telford Homes was expecting record profits and revenues for the financial year 2017/18; this performance was partially attributed to London’s housing shortage. In February 2019, the firm sold an east London site to
Greystar
Greystar Real Estate Partners is an international real estate developer and manager based in the United States. As of 2023, Greystar had over $76 billion in gross assets under management, and operated in 17 countries.
Per NMHC report, Greystar ...
in exchange for £105 million.
In June 2019, it was announced that the firm would build almost 900 homes at
Nine Elms Park in
Battersea
Battersea is a large district in southwest London, part of the London Borough of Wandsworth, England. It is centred southwest of Charing Cross and also extends along the south bank of the Thames Tideway. It includes the Battersea Park.
Hist ...
under a £280 million deal. That same month, it was announced that the American real estate investment and development firm
CBRE Group
CBRE Group, Inc. (an initialism of Coldwell Banker Richard Ellis) is an American commercial real estate services and investment firm with corporate headquarters in Dallas, Texas and global financial headquarters at Lever House in Midtown Manh ...
had submitted a bid valued at £267.4 million to acquire Telford Homes and that the price had met with the approval of the firm's directors.
Four months later, the acquisition was completed.
During June 2022, it was announced that outsider Anne Kavanagh had been appointed as Telford Homes' chief executive following the departure of John Di-Stefano. In October 2023, it recorded a pre-tax loss of £193 million after the firm was impacted by building safety writedowns and losses related to its conversion of the
listed Balfron Tower
Balfron Tower is a 26-storey residential building in Poplar, located in the London Borough of Tower Hamlets, London. Built in a Brutalist style, it forms part of the Brownfield Estate, an area of social housing between Chrisp Street Market an ...
in east London.
References
External links
Official Website of Telford Homes
{{Real estate in the United Kingdom
Home builders
Housebuilding companies of the United Kingdom