Housebuilder says 2012-linked regeneration provides good opportunity to build in east London

East London housebuilder Telford Homes has announced a 拢7.5m share placement to fund private development housing.

In a statement to the Stock Exchange this morning, it said: 鈥淚n the context of the ongoing regeneration of parts of east London, enhanced by the 2012 Olympics, improving transport connections and a shortage of supply of new housing, the directors consider that the company should take advantage of opportunities to begin construction of homes for sale in the open market.鈥�

The cash will enable it to fund open-market developments on two existing Telford sites that have affordable housing and a further four projects in partnership with EastendHomes, a stock transfer organisation.

The move follows Telford's purchase of Clifford Contracting last June in a deal that allowed it quick access to the 拢6m sitting on its balance sheet.

Cenkos Securities analyst Kevin Cammack said: 鈥淭he placing price discount to last night's close of 17% is certainly keen, but in terms of giving some visibility and time-scale to Telford's recovery opportunity it is a smart move and worth supporting.鈥�

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