The company's average selling price on its properties has increase by 20% to £223,000 in the 16 weeks to 20 April, compared with the same period a year ago, Redrow said.
The family home strategy which the company has been following, building family homes instead of flats, has been successful, Redrow said and it hopes that the Government's NewBuy scheme will boost sales this year.
"Redrow has made good progress under a strategy designed to return it to its roots, selling high-quality, differentiated family homes," Steve Morgan, executive chairman of Redrow said. "There are an increasing number of land opportunities both in London and in the regions and as such we are looking to raise further capital to enable us to take advantage of these opportunities as they arise."
"We now believe the time is right to accelerate that strategy by taking advantage of the development opportunities we see," he said.
Redrow aims to raise £19.4m through a firm placing of £14.9m new shares to Bridgemere Securities and it plans to raise a further £60.2m by issuing 3 new shares for every 20 existing shares, through an open offer at £1.30 per new share.
The average selling price of private reservations for the period grew 12% to £207,000, excluding London, and rose 20% to £223,000 including London.
