Vistry Group In £819 Mln Partnerships Deal With Leaf Living And Sage Homes

(RTTNews) - British homebuilder Vistry Group Plc (VTY.L) announced Tuesday that it has signed 819 million pounds partnerships deal with Leaf Living and Sage Homes for the delivery of more than 2,900 mixed tenure new homes.

The company expects an initial cash receipt of around 160 million pounds in fiscal 2023, with further staged payments across the development programme.

The portfolio is expected to deliver an adjusted operating margin in excess of 12 percent and a return on capital employed of around 40 percent, in line with the firm's medium term financial targets.

Under the deal, Leaf and Sage, both backed by Blackstone-managed funds and Regis Group plc., would acquire 2,915 units from Vistry, totalling a gross development value of 819 million pounds.

The homes are on plots located across 70 of Vistry's developments. Delivery is expected to commence this year and the majority of homes would be completed within the next two years.

Vistry Group said the plots formed part of its former Housebuilding landbank and are being pre-sold in-line with its strategy of pre-selling around 65 percent of all units across the business.

The transaction comprises 1,522 units for the private rented sector or PRS being delivered to Leaf and 1,393 affordable homes for rent and shared ownership being delivered to Sage.

For an initial tranche of delivery of both rented and shared ownership affordable homes,Vistry and Sage intend utilising their existing Homes England grant funding under the Affordable Homes Programme.

The company said the conclusion of this deal underpins its previously stated adjusted profit before tax expectation for fiscal 2023 of 410 million pounds.

Greg Fitzgerald, Vistry Group Chief Executive Officer, said, "Our strategy gives the Group significantly greater visibility on earnings than traditional housebuilders and this new partnership and others to follow, will help us drive towards our medium-term targets and the delivery of £1bn of shareholder distributions over the next three years."