London-based housebuilder Telford Homes has revealed a development pipeline of more than £1.5bn.
The company said its pipeline had grown by £500m following its acquisition of United House Developments’ regeneration business in September 2015.
Telford Homes will continue to expand into the private rented sector after securing two schemes this year, including a £69m deal to deliver a 150-home scheme in east London with M&G Real Estate (pictured).
The company reported record revenue of £245.6m for the year to 31 March 2016, up by 42 per cent, from £173.5m the year before.
Pre-tax profit for the year increased to £32.2m, up from £25.1m over the same period, with the firm aiming to exceed £50m within the next three years.
PRS made up 24 per cent of all property sales for the year, with no comparable PRS sales the year before.
The company is also looking at forming “longer-term partnerships” with institutional investors, stating that this year’s sales to L&Q and M&G were “just the start” of its expansion into the PRS market.
Telford Homes chief executive Jon Di Stefano said that while there were some “justifiable concerns” over prime residential properties in London, Telford Homes’ focus on non-prime housing would help the group grow.
“The group is focused on desirable non-prime locations in London at a price point that continues to see strong demand,” he said.
He added that Telford Homes is operating in a sector of the market “where demand continues to significantly outstrip supply”.
Other housebuilders have revealed their intention to expand into PRS, with Countryside Properties announcing in May that it would target sites in the West Midlands in partnership with developer Sigma.