Developer refinances residential scheme after partner backs out
One Heritage Group, the Manchester-based property development and management company, has refinanced a residential scheme near the city centre after a buyer backed out of a deal with the developer.
It announced today that work has been completed at Oscar House, on Chester Road.
The six-storey building comprises 27 apartments of one- and two-bedrooms, of which five are duplexes and 22 single-storey.
The group previously reported a Gross Development Value (GDV) of £6.2m which included an agreement with a buyer underwriting the agreed purchase price of £6.1m for 27 apartments and the separate sale of car parking spaces.
Unfortunately, the buyer has failed to perform on the purchase of 22 apartments.
The group will now re-market these units and, following a recent re-valuation of the completed building, it is anticipated that the Gross Development Value (GDV) will increase to £6.8m. This increase in value is due to price appreciation in the area.
The group has refinanced the project, settling the previous debt of £3.9m on June 9, 2023.
An agreement has been entered into with a new lender on improved terms for £4.2m for a period of 10 months to provide appropriate funding until all the remaining units are legally completed and handed over to customers.
The development was impaired by £400,000 in the most recent interim statement to December 2022, announced in an RNS on January 26, 2023. The overall performance of the project will be reported in due course when all remaining units are sold.
Jason Upton, One Heritage CEO, said: “The practical completion of Oscar House, Manchester, marks our third project completion of 2023 and it is satisfying to bring new life to a previously unoccupied site, developing the land into 27 modern, high quality apartments.
“Recycling Manchester’s brownfield sites is essential for the regeneration of the city centre and it will continue to be part of the group’s new development strategy.”
He added: “We are expecting to benefit from an increase in values and anticipate the financial performance of the project to be better than previously expected.
“We would not have been able to complete this project without the help of our professional partners. We would like to thank our principal contractor, Winworth Construction, Innov8 project managers, Ollier Smurthwaite Architects, Civic Structural Engineers and RJD, the principal designers.”
