(Alliance News) - One Heritage Group PLC on Thursday said it has successfully refinanced Oscar House in Manchester, repaying the previous debt of GBP2.7 million, alongside noting an obstacle to its disposal of land at Churchgate, Leicester.
The residential developer focused on the north of England said the Oscar House agreement is with a new unnamed lender on similar financial terms and a period of 18 months.
This will provide adequate funding until all 19 remaining units are legally completed and handed over to purchasers, One Heritage said.
It said the new arrangement allows the company to let the unsold units "as required", while it is estimated that this would generate maximum annual rental receipts of GBP300,000.
On Churchgate, One Heritage in November exchanged contracts for a sale of land. However, following a rights of light claim against the development, it said the contract for sale has been rescinded pending resolution of the matter.
One Heritage said it will update on progress in this regard in "due course".
"We are pleased to have agreed a financing arrangement on Oscar House which will enable us to also generate rental income if appropriate. It has been a milestone [for financial 2023] for the group as we delivered our first wave of practical completions. We look forward to continuing delivery of our strategy in [financial 2024] and to updating on progress," said Chief Executive Officer Jason Upton.
Shares in One Heritage were untraded at 14.50 pence each in London on Thursday afternoon.
By Greg Rosenvinge, Alliance News senior reporter
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One Heritage (OHG)