Wimpey to offer management service

WIMPEY, the housing and construction group, said yesterday it aimed to sell its skills at managing housing land to banks, accountants and other financial institutions, writes Heather Connon.

The services will be offered by Strategic Land Management, a new company set up to help Wimpey take advantage of lower interest rates and inflation. Joe Dwyer, Wimpey's chief executive, said the group had already had 'a number of exploratory talks' with potential customers.

The new company will also manage strategic holdings of Wimpey's holdings of land that has yet to receive planning permission, options and so on. Some will be transferred to Wimpey's housing division, but it will also be sold outside the group.

The housing regions are to be given more responsibility for managing their land stocks, which should be kept below two years' worth, but will be expected to achieve a return on capital of between 15 and 20 per cent.