Countryside Properties to focus solely on partnerships after strategy review

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Countryside Properties (LON:CSP) is to pull out of private housebuilding and focus solely on partnership work with local authorities, private renters and housing associations.


The builder said it made the decision after a strategic review with the land and assets held by its private building arm, which operates in the home counties, either to be switched to partnership use or sold.


Proceeds from sales are expected to be around GBP450mln by September 2023, which will be returned to investors through a share buy-back programme.


A new partnerships region will be established to serve the home counties employing existing staff and be run by Philip Chapman, who is currently on the company’s executive committee. He will report to Iain McPherson, group CEO.


Home counties’ strategy will be the same as the other partnerships arms in operation in London, the North, the Midlands and the South West.


Countryside expects it to be generating annualised adjusted operating profit of at least GBP60m by 2023.


A name change to Countryside Partnerships PLC is also planned in recognition of the change in focus.


John Martin, chairman, said: “The strategy will significantly accelerate the development of our partnerships business, which will be even stronger as a result.


“The value of the additional recurring earnings that this will generate, along with the GBP450mln proceeds from the disposal of surplus assets, clearly significantly exceeds the value of any of the other strategic options available.”

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