23 May 2008 07:00
Oak Holdings plc
23 May 2008
AGM statement
At its Annual General Meeting to be held later today, the Chairman of Oak Holdings plc will make the following statement: -
The last year has been a very busy period for your Company. We continue to make progress and remain confident in our two-pronged strategy of developing major property projects while at the same time building a property consultancy division. Consultancy revenues were well ahead of the previous year and we have further initial commissions in the UK, Russia and Kazakhstan, but our limited resources must whenever possible be directed towards our YES! Project.
During the year, we secured a number of major agreements relating to the Yes! Project, which, as shareholders will be aware, will be Europe's largest covered leisure-based resort, activity, sports and convention destination. It will be unique and will attract property investors looking for new opportunities.
To recap, as you know in 2007 we secured a Planning Consent for 300,000 square metres of development, on the YES! Project site and we executed the associated Planning Agreement (Section 106) on favourable terms, particularly for a scheme of this magnitude.
We also secured the 27 acres of freehold land to accommodate the main access to the Yes! Project. This key freehold ownership gives us control of the means of access to the site.
Moving on to more recent achievements, in February of this year, after prolonged and arduous negotiations, which encompassed statutory 'best value' tests requiring the District Valuer's approval, we finally agreed Heads of Terms for a Development Agreement and lease of 250 years with the Rotherham Metropolitan Borough Council (RMBC) for both the YES! Project and the adjoining Rother Valley Country Park. Solicitors for both parties are currently finalising the terms of that agreement.
Discussions continue with our strategic partners. BT are considering installing a mini Adastral Park - BT's high tech business centres - to showcase their technology. BT's support for the project was featured in their in-house magazine distributed to 120,000 employees worldwide. E.on are intending to incorporate a working renewable energy education facility at the project.
Our Design Team is in place - we must now take the scheme to potential tenants. Baydrive's Top Golf and Venture Xtreme have already signed MoUs and in March we were delighted to add the Sheffield Steelers, one of the UK's leading ice hockey teams, for whom we will provide a state of the art arena.
In April we signed a construction partnership agreement with Laing O'Rourke, the UK's largest privately owned construction company, who will become an integral part of the design team to take the project forward. They replace Skanska with whom for commercial reasons we were unable to progress.
The directors are currently exploring funding opportunities, which will include the immediate requirements of the YES! project and will take us through to a Development Loan. Shareholders will be aware of the MoU we hold with the Royal Bank of Scotland. Bankers confirm their interest in the project and as such, subject to specific lending criteria, we believe that a Development Loan can be secured to take the project through to completion.
The Board will remain focused on the Yes! Project. We believe that given the grant of outline planning consent and agreed Heads of Terms for a Development Agreement and 250 year lease, the value attributed to the scheme would, if a formal valuation were to be undertaken, be substantially higher than the £10.5 million currently attributed in Oak's balance sheet to the YES! Project. Our view is supported by an indicative 'Opinion of Value' commissioned from independent property advisers.
We must make progress such that the Company's underlying worth begins to be recognised, as we believe that firm foundations have now been laid for the future of the YES! Project and the Company.
Oak Holding Plc: +44(0)20 7493 5522
Steve Lewis, Chief Executive Officer
Mike Hill, Finance Director
Arbuthnot: +44(0)20 7012 2000
Tom Griffiths