11th Feb 2021 14:29
One Heritage Group PLC - residential developer focused on the north west of England - Raises GBP548,500 from 1.4 million share placing by Hybridan LLP and 426,667 share subscription at 30.0 pence per share. Price represents a 35% discount to its closing price on Wednesday of 46.50p. Placing and subscription shares represent around 61% of pre-fundraise share capital. This follows One Heritage's listing on December 23 at 10p per share.
Further announces GBP725,000 exchange of contracts on Plus House, Stockport, funded through placing, subscription, existing cash resources, and a shareholder loan facility. Property currently used an an office but was bought with the benefit of permitted development planning approval to convert the first, second, and third floor into 12 apartments. Management currently exploring revising planning to add an extension and thus a further 3 apartments, upping the total to 15. Construction set to begin in second 2021 quarter and completed in second quarter of 2022, even with revised extension. Development cost expected to e GBP1.0 million with gross development value on completion to be GBP2.3 million.
Notes increase in related party shareholder loan facility with One Heritage Property Development Ltd to GBP7.5 million from GBP5.0 million. The increased facility can only be drawn down if One heritage is unable to secure at least GBP2.5 million of construction finance from an external provider on acceptable terms. It reverts to a GBP5.0 million maximum once such finance has been obtained.
Chief Executive Jason Upton: "Plus House is an exceptional opportunity that fits within our business strategy. We see Stockport as a great location as it fits in with our strategy to focus on units that we believe young professionals will be attracted to."
Current stock price: 36.72 pence; down 21% on Thursday
Year-to-date change: up sharply from 11.75p on December 31
By Anna Farley; [email protected]
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