8 Jan 2009 10:27
For immediate release 8 January 2009
The Off-plan Fund Limited
Rescission of contracts in respect of development at Oldham Place, Liverpool
The Board of The Off-plan Fund Limited (the "Fund"), which specialises in providing forward finance to UK housebuilders, announces the rescission of contracts which it had entered into in April 2006 with the developer, Bentley Properties (Preston) Limited, for the purchase of 51 apartments to be built at a development in Oldham Place, Liverpool.
As previously reported the development initially faced difficulties when the appointed construction company went into receivership in December 2007. There was also an issue relating to the boundary with an adjoining plot of land which required an amended planning permission. Despite the appointment of a new construction company and receipt of the revised planning permission, the delays resulted in the developer being unable to complete the units by 31 December 2008 as required in the purchase contracts.
Given prevailing market conditions and short-term prospects for UK residential property (and inner-city apartments in particular), and having taken legal advice as to the options available to it, the Board has decided to exercise the Fund's contractual right to rescind all contracts and recover the deposits which are held by the developer's solicitors in respect of the development, together with interest thereon.
The Fund has informed the onward purchasers of 29 of the units of its intentions in this regard and all such purchasers have indicated their acceptance of the position on the basis that they too shall be repaid their deposits and accrued interest from the Fund.
It is the Board's intention to report the Fund's September 2008 year-end results in February, together with the Board's recommendation in respect of the continuation vote to be held at the AGM in March and an update on the Fund's current portfolio position.
List of Contacts
Development Capital Management
Roger Hornett
Andy Gardiner
020 7355 7600
Numis Securities Limited
Nominated Adviser
Nick Westlake
020 7260 1000
Corporate Broking
Charles Farquhar
020 7260 1000
Buchanan Communications
Charles Ryland
Isabel Podda
020 7466 5000
Audioboom Grp. (BOOM)