Taylor Wimpey primed for expansion
Published: 04 April, 2011
HIGH WYCOMBE: Taylor Wimpey has sold its US and Canadian housing arm for £595m.
The deal will allow the house builder to pay down much of its £660m debt and put the firm on a much firmer footing than any other house builder to fund expansion in the UK.
Pete Redfern, group chief executive, said the move: "is a significant step towards our goal of becoming a UK focused home builder".
TMM Holdings Limited Partnership, the property investor backed by TPG Capital and Oaktree, agreed the all-cash deal on Thursday, which was 3.5% more than Taylor Wimpey chiefs expected the business to fetch.
House builders report a busy start to the year in sales activity and most believe the spring selling season will herald the start of the recovery after dismal sales in the autumn.
Shares in both Wimpey and Barratt have rallied 20% in the last three months, despite fears that house price falls could hit building volumes.