(Sharecast News) - Formation Group announced on Friday that it is investing the £10m it raised in May, through its subsidiary Market Equities, into a number of property development sites in Ireland.
The AIM-traded company said the sites in Dublin, Limerick and Kildare were at various stages, and were owned by companies previously wholly controlled by Zandra Holdings - a substantial shareholder in the firm.
As part of the transaction, Market Equities has acquired 100% interests in the development sites through the issue of shares to Zandra JV, a company controlled by Zandra Holdings.
"Following the transaction, Market Equities will be owned 55% by Zandra JV and 45% by Formation," the board said in its statement.
"Market Equities has also acquired, for a nominal consideration, Formation's previously dormant subsidiary, Formation Homes Ireland, which will now be the main contractor for the developments."
24 Feb 2015 16:07