Oak looks to move on from YES! project
OAK Holdings is to focus on generating revenues from Rother Valley Country Park and its other interests but requires equity based funding to help secure its future, the group said today.
TheBusinessDesk.com reported last month how the future of Oak’s planned £350m YES! project in Rotherham looked extremely uncertain after the town’s council terminated a development agreement for the scheme.
Oak had had a preferred developer agreement with Rotherham Council in respect of the YES! project – which would have created one of Europe’s largest leisure resorts – since May 2003.
However, the Council has terminated the current development agreement between itself, Oak Ventures and Oak Holdings.
In a trading statement this morning, Oak acknowledged the ” very disappointing news” and said it had been reviewing the future plans and financing of the group.
Oak intends to continue generating revenue from the operation of the Rother Valley Country Park which is adjacent to the Yes! project site.
The group owns a lease on the park and runs a number of outdoor activities there and believes there is the potential to increase profitability at the site.
It will also continue to own Ringwood Town & Country Experience, which operates a museum, and intends to invest modestly at the site in order to provide better returns.
It also intends to invest in historic motor vehicles business Oak Heritage and continue its two property consultancy concerns.
However, Oak said it has total liabilities, including medium term loans, of around £1.9m and is in discussions with a third party to provide further equity based funding.
It said in a statement: “The group is also in discussions with banks with a view to funding some of the capital required to enable the strategy below to be implemented.
“As well as the possible equity based funding referred to above, the board is currently exploring various options in an attempt to ensure the future of the group and to best protect shareholders’ interests. Other options would include the acquisition, for shares, of a new business.”
