Housebuilder taps investors

Housebuilding giant Taylor Wimpey has raised £522 million through an investor cash call as it looks to take advantage of cheaper land amid the coronavirus pandemic.

The group said it had received “strong support” for the share placing with institutional and retail investors, having originally aimed to raise £500m.

The firm said it placed 355m new shares at 145p each, along with a subscription of 324,823 from directors of the firm and a retail offer of 4.9m shares.

Announcing the plans, the company said it is “now seeing a significant opportunity to invest in land at attractive prices”.

Taylor Wimpey said the disruption in Britain’s land market as a result of the Covid-19 crisis has created “short-term opportunities to acquire land from a broad range of sources at attractive returns and prices below pre-covid-19 levels”.

It has continued to acquire land throughout the pandemic, buying 12 sites in recent weeks.

The group said the money raised – including £200,000 from chief executive Pete Redfern – would go towards another 13 sites it is currently buying as well as 60 more the business is in discussions to acquire.

It also said it would pay back moneyusedundertheukgovernment’s furlough scheme for workers. As of 1 June, all employees had returned from furlough.

The group began a phased reopening of its building sites from 4 May, though construction firms had been allowed to continue operating south of the Border throughout the lockdown.

It also reopened its sales centres and show homes on 22 May for prebooked appointments only.

The firm plans to return to around 80 per cent of building capacity by the end of June. It said recently that it has seen a “very high level of demand” for appointments in England.