A US residential developer is to float on London’s Aim market to raise money so it can buy development land that has become heavily discounted following the US sub-prime mortgage crisis.

Weis Development is aiming to raise £75m in a placing this summer, which it will use to buy land in the so-called “sunbelt” states from California to Florida.

It will target distressed house builders and lenders to secure discounts of up to 70 per cent on book value of development land.

The raising is estimated to be enough to acquire sites with between 4,000 and 6,000 residential units.

Weis said it was not intending to become a land speculator or a 'vulture' fund and would build on the land once the market recovered. It could also target markets near the US with similarly distressed opportunities, such as Caribbean retirement communities.

Financial Times