Debt Repayment and Development Loan Extension
Formation Group Plc (AIM: FRM), the property development and project management company, is pleased to announce that the amount outstanding on its development facility of £8,981,000, which its subsidiary company Formation Homes (London) Limited holds with its current lender, has been reduced to £3,924,000 following recent sale completions at 159-161 Iverson Road, London NW6 2RB. There are further apartments exchanged totaling approximately £1,775,000 which, when completed, will further reduce these borrowings to approximately £2,150,000. The lender has now offered a three-month extension to its facility to 15th September 2016 on similar terms.
The development is fully completed, with further apartments under offer. The Board is confident that with current sales progress, remaining asset value in the scheme and access to its own cash resources (Norwich House Profit Share Agreement) this facility will be fully repaid. Profits on the development remain in line with expectations.
Enquiries
Formation Group plc
Tel: +44 (0) 20 7920 7590
David Kennedy, Chief Executive Officer
Northland Capital Partners Ltd (Nomad)
Tel: +44 (0) 20 3861 6625
William Vandyk / Gerry Beaney
Peterhouse Corporate Finance Limited (Broker)
Tel: +44 (0) 20 7469 0930
Duncan Vasey / Fungai Ndoro
Yellow Jersey PR Limited (Media Relations)
Tel: +44 (0) 7825 916 715
Dominic Barretto / Alistair de Kare-Silver