LONDON (Alliance News) - Formation Group PLC Tuesday said it has received an additional GBP1.0 million it was owed from its investment in a mixed-use development near Aldgate East tube station, London, bringing the total it has received to date to GBP1.6 million.
In March, Formation Group said an agreement was reached between Julius Properties Ltd and housebuilder Redrow PLC over a title issue relating to the Aldgate East Property Development.
The dispute cast doubt upon Julius' ability to repay JV Finance Ventures Ltd's investment into the site. Formation holds a 36.9% stake in JV Finance Ventures.
The construction and property development and management business said the agreement for the site at 1 Commercial Street means first three instalments due under the agreement have been received by JV Finance.
The remaining sums were due in April, May and June to be paid to JV Finance.
Formation Group on Tuesday said it has utilised a portion of the funds it received to repay the working capital loan relating to the development of a site in Whitechapel, east London.
Formation Group shares were quoted down 6.9% at 1.70 pence Tuesday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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Redrow (RDW)