22 Sep 2009 13:15
| For Immediate Release | 22 September 2009 |
THE OFF-PLAN FUND LIMITED
(the "Company" or "Fund")
Update re Rescission of Purchase Agreements in respect of Canon House, Wallington
As announced on 14 August 2009, the Fund has exercised its right to rescind each of the purchase agreements entered into between the Fund and Henry Homes (Wallington) Limited ("HHW") in respect of the 118 residential units which were to comprise part of the proposed Canon House development in Wallington (the "Agreements").
In this previous announcement it was also stated that the Fund would seek to secure the return of sums outstanding owing to the rescission of the Agreements. As an update in this regard, the Fund is pleased to announce that Bank of Scotland Plc ("BoS"), as lending bank to HHW, has acknowledged the rescission of the Agreements and that the Fund has today received the sum of £3 million previously held in escrow by AIB Bank (CI) Limited ("AIB") as collateral for a completion guarantee provided by AIB to BoS in respect of the Fund's former obligations under the Agreements.
In addition and as previously announced, the Fund is also entitled to have the deposits it paid under the terms of the Agreements, amounting to £1.1 million in aggregate (the "Deposits"), repaid by HHW or in the event that HHW is wound-up, repaid, to the extent that any amount of the Deposits remain outstanding, by Zurich Insurance Company (trading as Zurich Municipal) which has guaranteed the return of the Deposits to the Fund in the event of such a winding-up.
The process to recover the Deposits has commenced and there will be a further announcement in due course, once it is possible to determine more accurately the likely timetable for the conclusion of this process.
List of Contacts:
Development Capital Management
Roger Hornett
Andy Gardiner
020 7355 7600
John East & Partners Limited, a
subsidiary of Merchant Securities Plc
(Nominated Adviser)
Bidhi Bhoma/Simon Clements
020 7628 2200
Audioboom Grp. (BOOM)