The Vistry Group PLC (LON: VTY) share price traded sideways after the company announced that it had been selected as the preferred delivery partner on two schemes providing more than 1,500 new homes within the UK. The lacklustre response from investors was unexpected but could be attributed to negative investor sentiment towards the entire industry.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company had been selected via its subsidiary Countryside Partnerships by the Milton Keynes Council as the development partner on a scheme delivering 930 homes. The development, which has a gross valuation of approximately £275 million, will include 50% affordable housing, delivered in affordable rent, shared ownership and social rent tenures.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Vistry will also deliver community facilities, including a primary school and commercial centre and multiple public open spaces, including sports pitches, playing fields and a wellbeing centre. The project will be based in Newport Pagnell.
Furthermore, Countryside Partnerships secured a Pre-construction Service Agreement (PCSA) in Southall, London. The subsidiary has been awarded the design and enabling works for 575 homes by Network Homes. The development has a potential contract value of about £145 million for the main works.
The London Southall scheme will have four buildings running in height from 15 to 23 storeys. It will also provide 174 affordable homes, with the remaining 401 homes being built to Rent tenure, funded, owned and operated by Grainger Inc.
Many analysts and investors expected a better response from the markets to Vistry’s announcement today, but this was not the case, despite the potential revenues from the two projects.
Investors' negative sentiment about the real estate sector, in general, has spilt over to Vistry, as evidenced by the muted reaction to the news. The company’s shares barely moved on today’s news despite their potential significant impact on its revenues.
Greg Fitzgerald, Chief Executive of Vistry Group, said: “Our unique and leading Partnerships model enables us to work with our partners on delivering much-needed homes across the UK. Our selection for these two major developments reflects our expertise and commitment to provide quality homes and lasting communities.”
Vestry share price.
The Vistry share price traded sideways, alternating between slight losses and gains today.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.