Telford Homes buys east London property for £30m

Property developer Telford Homes has bought the former London Electricity Board building in east London for £30.2m in order to build affordable new homes.

The AIM-listed company said on Wednesday that it has exchanged contracts to buy the development site on Cambridge Heath Road, from the London Borough of Tower Hamlets.

Telford Homes is to build affordable new homes on the site in the heart of Bethnal Green, along with some commercial space costing about £95m, subject to planning permission. Work is expected to start in 2018 to complete in 2021.

Chief executive Jon Di-Stefano said: "This development fits perfectly with our strategy of developing sites in non-prime London locations where there is a fundamental lack of supply of new homes compared to significant demand from prospective owners and tenants.

“The site adds to our already strong pipeline of high quality developments and we look forward to securing a planning consent and commencing construction as soon as possible next year."

Shares in Telford Homes were up 0.76% to 333.25p at 0950 GMT.