Residential developer acquires new city centre site
One Heritage Group, the UK-based residential developer focused which has typically focused on the North West of England, has acquired a site on Bank Street, Sheffield.
The deal is the developer’s first acquisition since it was admitted to the London Stock Exchange’s main market at the end of December.
The total consideration paid for the site is £879,770 cash, which it has financed through a combination of the £5m shareholder loan facility, the repayment of a loan by a related party and existing cash resources.
The deal follows the firm signing the option and exclusivity agreement on 24 November last year.
The site, which is on the edge of the retail and commercial centre of the city’s Cathedral District, is a 15-minute walk from the train station. It currently has planning permission for 21 self-contained apartments, but it is expected that a new planning application will be submitted in order to increase this number to 23.
The Company expects the final development cost to be £2.9 million with a Gross Development Value (GDV) of £3.6 million. Work is expected to start on site in the first quarter of 2021 with completion anticipated for the first quarter of 2022.
Jason Upton, CEO of One Heritage CEO said: “We are delighted with our maiden acquisition as a listed company and this morning’s announcement is testament to the quality of the opportunities we are seeing. We are already seeking to expand the potential of the site to increase the number of the apartments with a view to completion in Q1 2022.”
During its listing last month, the firm said it would look to expand its activities to locations similar to the North West including Yorkshire and the East and West Midlands and would “focus on edge of city centre locations where there are good transport links or where there is a major local employer to underpin demand allowing a high-quality housing product to be delivered at a competitive price point”.
The firm added that it intends to sell it’s schemes of self contained apartments to investors “through the group’s marketing network in Hong Kong or through forward sale agreement to institutional investors”.
