24th Apr 2019 12:57
LONDON (Alliance News) - Trafalgar Property Group PLC said on Wednesday it has acquired a development site in Surrey for an assisted living scheme for GBP2.3 million in cash.
The acquisition will be partly financed by a loan of GBP360,000 from the property developer's Chief Executive Officer Chris Johnson as well as a loan provided by an unnamed lending institution.
The site is 1.3 acres in size, and consists of a former nursing home with an estimated site value of GBP3.0 million.
Planning permission has been gained for the demolition of all buildings and the development of 37 two-bedroom units, which is estimated to have a gross development value of GBP15.1 million.
There is a variation option for the addition of 15 units, which lifts up the GDV estimate to GBP21.2 million.
"Having launched our assisted living strategy last year, it is a major milestone for the group to acquire its first development site. Demand is growing in the UK for specialised retirement housing and this is particularly pertinent given the fast-growing aging population in the UK and current demographic trends," said Chair James Dubois.
"Furthermore, Trafalgar's assisted living offering directly satisfies the increasing preference for retirees to maintain a level of independence. Trafalgar recognises this trend and with a development timeline now in place, we are focussed on having our first units ready for reservations in late 2019," Dubois added.
Shares in Trafalgar Property Group were up 7.5% at 0.70 pence on Tuesday.
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