Taylor Wimpey boss questions valuations as debt deal is struck
Taylor Wimpey made a pre-tax loss of £1.9bn last year as the average value of its UK home fell by 11pc and sales volumes dried up.
Speaking to The Daily Telegraph, Pete Redfern, the chief executive, said the downward pressure on house prices has been exacerbated amid the financial crisis by valuers not judging properties on their present value, but prejudging future falls.
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Meanwhile, as expected, Taylor Wimpey’s Eurobond holders yesterday approved the refinancing of its £1.57bn of debt. The shares rose ½ to 45p as a result.
The new deal reduces the risk of a breach of covenants and encourages Taylor Wimpey to raise more than £350m in new equity. Its interest payments would be significantly lower in such circumstances.
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