McCarthy & Stone Ltd.’s owners held talks with advisers that may lead to an initial public offering of the builder of retirement homes, two people with knowledge of the matter said.
The company, whose owners include TPG Capital and Goldman Sachs Group Inc. (GS), may be valued at about $1 billion in the IPO, said one of the people, who asked not to be identified because the details are private. No final decision has been made on a sale or its timing, they added. Another person cautioned that the talks were focused on refinancing debt rather than an IPO.
Property developers in the U.K. will begin 10.5 billion pounds ($18 billion) of housing projects this year, a 14 percent rise from 2013, according to construction-data provider Glenigan Ltd. The FTSE 350 Real Estate Index has risen 6.9 percent this year as investors continue to bet on the industry.
Officials at McCarthy and owners TPG, Goldman Sachs, Alchemy Partners LLP and Strategic Value Partners LLC declined to comment on the sale plans. A spokesman at Anchorage Capital Group LLC wasn’t available to comment.
About 3.5 million people in Britain are interested in buying a retirement home, according to McCarthy’s website. The company, which has built more than 45,000 apartments in the U.K., posted a 49 percent gain in revenue to 149.7 million pounds in the half year ended Feb. 28.
McCarthy cut its net debt to 93 million pounds as of February after a 527 million-pound refinancing in August 2013. The homebuilder, based in Dorset, England traded on the London Stock Exchange before being taken private in 2006.
Since the refinancing, McCarthy hired John White, former chairman and chief executive officer of residential homebuilder Persimmon Plc (PSN), as chairman. Clive Fenton, ex-CEO of property developer Mount Anvil Group Ltd., joined as CEO in February.