FRM.L Regulatory News (FRM)

21 Aug 2007 10:11

Formation Group PLC21 August 2007 Formation Group PLC ("Formation" or the "Company") 21st August 2007 Property Development Equity Stake - Up-date On 29 June 2007, Formation announced it had taken a 10% equity stake in ColumbiaFormation Group Ireland Ltd ("CFGIL"), a company undertaking the re-developmentof two sites in Dublin, Ireland; one known as Clancy Quay a 14.5 acre site inDublin's City Centre, the other, a 4.5 acre site at Davitt Road situatedapproximately 2 miles outside of the City Centre. The combined land value forboth sites has recently been independently valued at over 170 million euros. The Company today confirms that it has subscribed for unsecured loan notes inCFGIL ("Loan Notes") to the value of 1 million euros. At the same time, ImpalaHoldings Limited (a Guernsey registered trust of which the David Kennedy familyare the sole beneficiaries of) and Bank of Scotland (Ireland) Ltd (the two othershareholders in CFGIL) have jointly subscribed for Loan Notes to the value of afurther 9 million euros The proceeds from these Loan Notes and additional bankfinance will be used to purchase and develop a site known as the "Lyons Teafactory", an 8.7 acre site which is adjacent to the existing 4.5 acre DavittRoad site already owned by CFGIL. CFGIL will be undertaking the re-development of the Lyons Tea factory site andthe existing Davitt Road site. Site planning permissions for the overalldevelopment are expected to be granted over the next 12 to 18 months. Successfulplanning applications should add material value to the sites and the Companywill continue to update the market as appropriate. The Loan Notes can be redeemed in one of two ways; firstly at the end of thesecond anniversary of issue or secondly as and when an independent land valuefor the whole of the Davitt Road site is obtained for a prescribed value, as setout in the Loan Note instrument. The Loan Notes only accrue interest after two years from the date of issue. Commenting, Neil Rodford, Chief Executive, Formation said: "It will take time to build out these developments and realise the resultantvalue and I look forward to updating the market on each scheme as we progressthese developments. In the meantime, this adds further substance to our balancesheet and clearly demonstrates the Group's progress when considering the twostrategic investment partners involved. -ENDS- Enquiries Mike Wallwork, Formation Group PLC Tel: 0161 980 1210 David Youngman, WH Ireland Limited Tel: 0161 832 2174 Formation Group's website can be accessed at: www.formationgroupplc.com Notes To Editors Formation Group PLC provides a range of financial advice, property investmentsolutions and representation management to professional athletes, sportinginstitutions and high net worth individuals. It also provides project managementservices to clients in the property sector. With offices in Hale Barns,Wilmslow, London, Nottingham, Dublin and Washington D.C, Formation Group plcemploys approximately 70 people. This information is provided by RNS The company news service from the London Stock Exchange