Property refinancing

RNS Number : 5158G

Trafalgar Property Group PLC

06 November 2018

 

6 November 2018

TRAFALGAR PROPERTY GROUP PLC

("Trafalgar", the "Company" or "Group")

Property refinancing

Trafalgar (AIM:TRAF), the AIM quoted residential and assisted living property developer, provides an update on its development in Speldhurst, Tunbridge Wells, Kent (the "Speldhurst Property").  The site was acquired with the benefit of planning permission for the demolition of the existing property and the erection of a substantial new build detached house on the site, the building of which has completed and is on the market for sale at £1.8 million. 

It was announced on 6 September 2017 that the Speldhurst Property was held in trust by Alex Johnson, a director of the Company, for the benefit of Trafalgar New Homes Limited (formerly called Combe Bank Homes Limited) ("TNH"), a subsidiary of the Company.  In addition, it was announced that TNH had accepted responsibility for the repayment of Mr Johnson's loan and associated interest payments on the Speldhurst Property on the same terms as Mr Johnson has with the bank (the "Current Loan"). 

The Current Loan stood at £783,430 and was due for repayment.  Therefore, TNH has entered into a new five-year loan for £1,055,000, secured against the Speldhurst Property, the proceeds of which will be used to repay the Current Loan and to provide TNH with working capital (the "New Loan").  In order to implement the New Loan, the Speldhurst Property has been transferred for nil consideration from the trust arrangement in Mr Johnson's name to the name of TNH directly. Chris Johnson, Chief Executive of the Company, has provided a personal guarantee up to £148,500 to the lender in respect of the New Loan.

The transfer of the Speldhurst Property and the provision of the guarantee on the New Loan by Chris Johnson are related party transactions under the AIM Rules for Companies.  Accordingly, the directors of the Company independent of these transactions consider, having consulted with Allenby Capital Limited, the Company's Nominated Adviser, that the transactions are fair and reasonable insofar as the Company's shareholders are concerned. 

Enquiries:

Trafalgar Property Group Plc Christopher Johnson	[phone]
Allenby Capital Ltd - AIM Nominated Adviser and Broker Jeremy Porter/James Reeve/Liz Kirchner	[phone]
Yellow Jersey PR Limited Charles Goodwin	[phone]

 

END

 

 

MSCEADFKEFEPFFF