Gleeson to ‘cautiously’ re-start investment in low-cost development sites

URBAN regeneration specialist Gleeson said that difficult trading conditions experienced by house builders for the last two years are starting to ease at last.

Gleeson told shareholders at its Annual General Meeting (AGM) that house sales by Gleeson Regeneration and Homes, which is now headed by former Shepherd Homes managing director Jolyon Harrison, were still ahead of last year and that selling prices appeared to have stabilised or even improved.

Gleeson said it had now authorised Mr Harrison to “cautiously and very selectively” re-start investment in suitable low cost development sites.

The firm added that since its interim management statement in November it had sold a 20 acre site with residential planning permission in Sussex.

The group’s commercial property development business has not committed to new projects since March 2007 and is in the latter stages of disposing of its remaining portfolio.

However, Gleeson Capital Solutions continues to progress potential private finance initiative (PFI) opportunities and is one of two final bidders on a PFI social housing prospect in the North.

It is involved with a number of PFI projects in the region including one to build houses, flats and bungalows across Leeds.

The 25-year project will delivered on behalf of Leeds City Council by Leeds Independent Living Consortium in which Gleeson has a 33% stake.