Share issue and loan deal with Wainford Holdings gives retirement homes specialist a boost

Retirement home builder Wren Homes has raised 拢4m through a share issue and loan deal with investment group Wainford Holdings.

In an announcement to the stock exchange this morning, it said: 鈥淭he net proceeds of the proposed investment will be used to fund development of the company's extra care accommodation schemes and for general working capital purposes.鈥�

A total of 拢1m will be raised through the issue of 10 million shares at 10p each to Wainford. The remaining 拢3m will be in the form of a five-year loan from the company at a 5% rate of interest.

Paul Treadaway, chief executive of Wren Homes, said: 鈥淚 am delighted to announce this very significant investment into Wren Homes and at a premium to the current share price. It represents a strong endorsement of the company.鈥�

As part of the deal, Dominic Wainford, founder of Wainford Holdings, will be appointed to the Wren board - along with Wren's company secretary, James Butterfield.

City analysts have suggested that smaller housebuilders will struggle to ensure a steady flow of working capital in the current poor trading environment.

In May, Wren announced a pre-tax loss of 拢393,970 in the half-year to 31 January 2008 after failing to sell a single home in the period.

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