16th Sep 2016 16:07
LONDON (Alliance News) - Caledonian Trust PLC on Friday said it has entered into an agreement with Leafrealm Ltd to put in place a GBP360,000 loan facility.
The facility will provide funding for the anticipated construction costs on two new semi-detached houses at Brunstane Road South in Edinburgh.
Leafrealm is a company controlled by Douglas Lowe, Caledonian Trust's chairman, chief executive and major shareholder.
Under the terms of the facility, Leafrealm will advance amounts to the company on a monthly basis to fund the ongoing construction costs for the development and to meet certified valuations approved by an architect each month. Caledonian Trust drew down an initial tranche of GBP50,000 on Friday.
Construction of the houses is expected to be completed in January, and Caledonian Trust intends to repay amounts drawn down under the facility from the future sales proceeds of the two houses.
In addition, Leafrealm has provided an additional unsecured loan of GBP50,000 to Caledonian Trust in order to enable the company to provide funding for the acquisition of certain rights in relation to two other development sites located within the Loch Leven Ramsar catchment area in Scotland.
Shares in Caledonian Trust were untraded on Friday, last quoted at 87.00 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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