Redrow is latest developer to close sites

Housebuilder Redrow has decided to shut down its development sites amid the Covid-19 pandemic. The company said that it had taken the decision after finding it “increasingly impracticable” to maintain operations due to a significant impact on its supply chain in recent days. It had already reduced its workforce on sites and closed its sales centres, with office-based staff working from home. Redrow said that it would immediately begin furloughing a significant proportion of its employees under the government’s job retention scheme. The firm has also begun discussions with its six banks to increase its additional facility of £50m to £100m to shore up its balance sheet and has submitted an application to the Bank of England for the government’s Covid-19 corporate financing facility. Redrow also has revolving credit facility of £250m. Executive chairman John Tutte said: “These are unprecedented times. The actions we have announced will give us the flexibility to manage the business through this turbulent period to ensure we are ready to resume production when it is safe to do so.” Watkin Jones Build-to-rent developer Watkin Jones has also said it will start closing its active development sites. It added that within its Fresh Property Group, which manages its student and BTR tenants, it has enhanced cleaning regimes and is in discussions with key stakeholders over the impact the virus will have on the summer term. Balfour Beatty Contractor Balfour Beatty has postponed its final dividend payment of 4.3p per share, while its group chair, directors, non-executive directors and executive committee have agreed to take a 20% pay cut. Balfour Beatty said its sites and contracts would remain operational where it is practical to implement the new operating procedures issued by the Construction Leadership Council and endorsed by Public Health England. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette