Mar City in confident mood after housing unit purchases
REGIONALLY-based developer Mar City says successful land acquisitions at the end of the year have left it in a good position to prosper in 2014.
In a trading update ahead of its final results for the year ended December 31, the Birmingham, Solihull and London-based firm said revenue will be ahead of market expectations, which means a “significant increase” on the previous year.
It said increase in revenue has been generated from the ten contracts in place covering 648 new houses and apartments that have a combined contract value of £56m of which approximately £35m has now been delivered. The remaining £21m is expected to be delivered in 2014.
Mar City said successful land acquisitions for a total consideration of £30.8m at the end of 2013 have secured more than 500 housing units across eight sites, with four sites already under development.
And it said that a strong new sales pipeline is benefiting from the ‘Help to Buy’ scheme which is helping first time buyers, young professionals and families into home ownership.
Additional equity funding increased cash balances by a net £28m which will be used to acquire additional new land during 2014 and a number of negotiations are already well advanced for sites in London, the South East and the Midlands.
Tony Ryan, CEO of Mar City, said: “Mar City performed very strongly during 2013. Operating efficiencies have delivered improved margins and as a consequence results for the year are ahead of market expectations.
“The successful fund raising and acquisitions secured at the end of 2013 provides a strong pipeline of new residential developments and we have continued to make very good progress in the short period since.
“This platform and improving market conditions underpin our confidence for 2014 which will mark a transformational period for Mar City as we continue to benefit from the growth in demand for high quality new homes for the private and public sector.”