Share placing funds One Heritage acquisition of Stockport site
Manchester-based residential development business One Heritage Group has raised £548,500 in a share placing, and completed the acquisition of a Stockport property worth £725,000, it announced today.
A total of 1,828,333 new ordinary shares of 1.0 pence each were issued at a price of 30p per Share, with existing and new investors, represent approximately 6.1% of the ordinary share capital prior to the placing and subscription.
The proceeds were used in the purchase of Plus House in Stockport.
Completion is expected on March 31, 2021, with the acquisition to be funded through the placing, existing cash resources and the shareholder loan facility.
The property is currently used as an office but has been acquired with the benefit of permitted development planning approval to convert the first, second and third floor into 12 apartments with approximately 2,500 sq ft of office space on the ground floor.
Management is exploring revising the planning to add an extension which adds an additional three apartments, this increases the total to 15.
The company expects construction to start in the second quarter of 2021 with completion during the second quarter of 2022, even with the revised extension.
One Heritage expects a development cost of £1m, with a gross development value on completion of £2.3m.
The costs and timelines are dependent on the permitted development planning approval and do not include the planning extension as envisaged.
The site is located in the heart of Stockport on St Petersgate in proximity to a number of historical buildings, including St Peters Church, and is a five minute walk to Stockport train station which has a direct rail link to both Manchester and London.
The company is also announcing that its related party shareholder loan facility with One Heritage Property Development Limited has been increased from £5m to £7.5m.
The increased facility can only be drawn down in the event that the company is unable to secure construction finance from an external provider on terms acceptable to the board and to a value of at least £2.5m.
Once construction finance of £2.5m has been secured, the loan facility from One Heritage Property Development will revert to a maximum of £5m.