Inland Homes ups profit share from former RAF site in Middlesex

Inland Homes, the AIM-listed brownfield regeneration group, has increased its profit share from the Drayton Garden Village project in Middlesex after a further deferred payment to the government.

As part of its option and development services agreement with Drayton Garden Village, Inland has made another payment to the Defence Infrastructure Organisation (DIO) to raise its profit share to 72.08%. The DIO, formed in 2011, replaced the former Defence Estates and manages the Ministry of Defence's property infrastructure and defence estate.

The regeneration in West Drayton comprises of 773 new homes, an 80-bed care home and a number of commercial premises on the 31-acre former RAF site.

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The company still has the potential to earn up to 90% of the profits realised from the sale of the property over the life of the project, under the agreement with the DIO.

Inland also announced that it has now completed the sale of its stake in Howarth Homes for £1.4m at a profit of £0.39m.

The firm's original intention behind its investment in Howarth was to seek a possible stock-market flotation. However, Inland said in its half yearly report last month that conditions on the AIM Market have "not been conducive to flotations in recent years" and announced its intention to sell its holding.

"These transactions mark further positive progress for Inland. It is particularly pleasing to have achieved our exit from the equity of Howarth at a satisfactory figure. These proceeds will be re-invested in our growing house building operations," said Chief Executive Stephen Wicks.

"We continue to have a good on-going relationship with Howarth as one of our key building contractors and our joint venture partners on the Croxley Green development."