2nd Oct 2024 11:08
(Alliance News) - One Heritage Group PLC on Wednesday announced a comprehensive restructuring plan under which it intends to change its name and consider a listing change.
The Manchester-based residential developer focused on the north of England said it is considering moving from London's Main Market to the Aquis Stock Exchange, citing higher operational costs, softening investor demand and broader macroeconomic uncertainties which have created a challenging environment.
One Heritage shares fell 25% to 4.50 pence each on Wednesday morning in London.
"A major change in OHG's business model has been the move away from in-house construction. Previously, projects such as St Petersgate in Stockport and Bank Street in Sheffield were completed by an in-house team. However, given the rising costs and risks associated with self-delivery, the company now engages third-party construction firms under fixed-price contracts, mitigating the risk of financial exposure," it said.
One Heritage added: "The AQSE growth-focused market appears to align more closely with the company's current size and strategic objectives, providing a platform that is better suited to support its future ambitions."
The company announced planned acquisitions that it said were likely to constitute a reverse takeover under UK listing rules. It plans to buy a 30% stake in the company that owns the One Victoria project in Manchester, which has a gross development value of GBP39.5 million and is expected to complete in the second half of 2025.
Further, One Heritage aims to sell a portfolio of completed residential and commercial properties, valued at GBP7 Million, to OH UK Holdings Ltd, a company connected with One Heritage Property Development Ltd, which is One Heritage's majority shareholder.
Additionally, the company aims to rebrand as Zentra Group PLC "to reflect its renewed strategic focus and to distance itself from any potential reputational risks associated with the One Heritage brand in Asia, which is tied to its majority shareholder".
It added: "This new identity gives the company the flexibility to reshape its image in the UK market, focusing solely on residential development to provide apartments and single-dwelling houses. The decision to rebrand as Zentra Group PLC stems from a desire to establish an identity that resonates with the company's strategic repositioning. The name 'Zentra' was chosen to embody the values of balance, harmony, and focus, with 'Zen' symbolising a sense of calm and mindful approach to property development."
Further, One Heritage said it will focus on two core residential sectors by delivering apartments under its new "Living" and Homes" brands while continuing to provide property management services. It added it will discontinue the management of co-living property, so it can focus on the property management in the two core sectors.
Finally, the company said it appointed Scott Nicol as head of Investment. He will oversee the commercial aspects of the business.
By Tom Budszus, Alliance News slot editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.