OPF Off-Plan Fd

 

TIDMOPF 
 
RNS Number : 4308X 
Off-Plan Fund Limited (The) 
14 August 2009 
 

+-------------------------------------+--------------------------------------------+ 
| For Immediate Release               |                             14 August 2009 | 
+-------------------------------------+--------------------------------------------+ 
 
 
THE OFF-PLAN FUND LIMITED 
(the "Company" or "Fund") 
 
 
Rescission of Purchase Agreements in respect of Canon House, Wallington 
 
 
In the interim results for the six months ended 31 March 2009, announced on 30 
June 2009, the Fund stated that it had been given notice that the lending bank, 
Bank of Scotland Plc, had appointed a receiver under the Law of Property Act 
1925 in respect of the banks charge over Henry Homes (Wallington) Limiteds 
("HHW") leasehold interest in the site at Canon House, Wallington.  Owing to the 
fact that this constitutes an insolvency event of default under each of the 
purchase agreements entered into between the Fund and HHW in respect of the 118 
residential units which were to comprise part of the proposed Canon House 
development in Wallington (the "Agreements"), the Fund has exercised its right 
to rescind each of the Agreements. 
 
 
This rescission entitles the Fund to have the deposits it paid under the terms 
of the Agreements, amounting to GBP1.1 million in aggregate (the "Deposits"), 
repaid by HHW and releases the Fund from any further obligations in respect of 
the scheme. 
 
 
In accordance with its contractual rights, the Fund is entitled to and will seek 
to secure the return of the Deposits as soon as is practicable. Should HHW fail 
to repay the Deposits within 7 days the Fund may elect to petition for HHW to be 
wound-up and thereby ultimately trigger the repayment of any outstanding amount 
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 Fund will also, in accordance with its contractual rights, seek to secure 
the return of the sum of GBP3 million held by AIB Bank (CI) Limited ("AIB") as 
collateral for a completion guarantee provided by AIB to HHW's lending bank in 
respect of the Fund's obligations under the Agreements, now rescinded. 
 
 
This process is likely to take a number of weeks depending upon the actions of 
relevant third parties and there will be a further announcement in due course. 
 
 
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 
 
 
Buchanan Communications 
Charles Ryland 
Isabel Podda 
020 7466 5000 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCPJMFTMMTBBLL 
 

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