LONDON (Alliance News) - Property developer Formation Group PLC on Monday said it has reduced the amount of debt outstanding on its development facility following recent apartment sales at 159-161 Iverson Road in London.
Formation said the outstanding amount has now reduced to GBP3.9 million from GBP9 million, adding that this will reduce even further to GBP2.2 million when the sales of further apartments at the property totalling GBP1.8 million are completed.
Formation's lender has offered a three-month extension to its facility to September 15.
Formation added that the development at 159-161 Iverson Road is fully completed, with further apartments under offer.
"The board is confident that with current sales progress, remaining asset value in the scheme and access to its own cash resources, this facility will be fully repaid. Profits on the development remain in line with expectations," Formation said.
Shares in Formation were untraded on Monday morning, last quoted at 5.50 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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