CW’s share price has risen from 155p to 194p this calendar year - well ahead of its net asset value. This is largely because investors expect it to announce bumper capital gains during 2007.
Last year’s results included rental income on 18 rental properties scattered throughout the UK, as well as proceeds from the sale of three remaining flats in Edgbaston, and five out of six flats at the Old Dairy development in Tunbridge Wells. But in 2007, CW expects to make a further 45 sales – it has 22 flats up for sale at the Balmoral House development in Tunbridge Wells (seven have exchanged contracts and another seven are in solicitors’ hands) and 23 at The Heights in Rochester, also in Kent. These flats are currently under construction, with completion due this autumn. And the combined sales value of the two developments is a bumper £8m.
So, what about 2008 and beyond? CW has put in planning applications for two small developments totalling five units, but nothing else. However, chairman Robert Dory is confident that the current developments can be replaced by new ones and says that “all will be revealed in due course”. Nevertheless, property prices are high and any tail-off in housing demand could rapidly reduce margins on new projects.
