Trafalgar Property Group PLC Trading Update (4384P)
May 29 2018 - 2:01AM
UK Regulatory
TIDMTRAF
RNS Number : 4384P
Trafalgar Property Group PLC
29 May 2018
29 May 2018
TRAFALGAR PROPERTY GROUP PLC
("Trafalgar", the "Company" or "Group")
Trading update
The Board of Trafalgar Property Group plc (AIM: TRAF), the AIM
quoted residential and assisted living property developer, is
pleased to provide an update on progress.
Trafalgar's wholly owned subsidiary, Trafalgar Retirement +
Limited ("Trafalgar Retirement"), has continued to research and
pursue potential properties for acquisition, and in particular,
seeking neighbouring properties that can be consolidated into one
larger site for redevelopment into 'extra care' living developments
for the retired and elderly. A number of new option agreements to
acquire properties have been agreed by Trafalgar Retirement
recently over a total of 14 individual properties across three
sites for possible redevelopment (the "Options"), further details
or which are set out below.
The intention is that these three new sites would be developed
into 'extra care' assisted living properties, once the Options are
exercised and the properties purchased by the Group and subject to
obtaining the relevant planning permissions for each development.
The proposal is that these three new additional sites would provide
up to a further 165 one and two-bedroom units. Trafalgar
Retirement's assisted living schemes will be designed to allow
elderly owner-occupiers to 'remain at home, not in a home' and each
development typically will include a communal lounge and dining
area, a wellbeing suite and access to 24-hour care services, 365
days a year.
A summary of the three sites covered by the Options are as
follows:
Frimley, Surrey
Trafalgar Retirement has entered into Options to acquire four
adjacent properties for an aggregate consideration of GBP4.7
million. Plans have been drawn up for the development of the site
into a 48 unit assisted living scheme.
Wokingham, Berkshire
Trafalgar Retirement has entered into Options to acquire four
adjacent properties for an aggregate consideration of GBP5.0
million. Plans have been drawn up for the development of the site
into a 51 unit assisted living scheme.
Maidstone, Kent
Trafalgar Retirement has entered into Options to acquire six
adjacent properties for an aggregate consideration of GBP3.2
million. Plans have been drawn up for the development of the site
into a 60 unit assisted living scheme.
Trafalgar Retirement paid a nominal sum to the property owners
to enter into the Options, which provide the right to Trafalgar
Retirement, in its sole discretion, to acquire the individual
properties at an agreed price at any time within 12 months of the
Option date. The Options also include a clause to extend the
exercise period further to a maximum of 18 months from the date of
the Option, in the event that Trafalgar Retirement has lodged an
appeal against the refusal or non-determination of a planning
application during the initial 12 month Option period.
Following the purchase of these additional Options, Trafalgar
Retirement now has options over a total of 27 properties across six
development sites. Initial topographical surveys have been
commissioned across the three sites ahead of the submission of
pre-planning applications.
Funding for the full planning applications, purchase of the
properties under option and development of the sites is currently
being negotiated and in this regard, the Company announced a
memorandum of understanding with DIS Partners Holding Luxembourg
S.à r.l. on 11 April 2018. In addition to this, other funding
options are also being considered.
Trafalgar New Homes update
The Company is also pleased to provide the following update on
progress in the Company's other subsidiary, Trafalgar New Homes
Limited (previously Combe Bank Homes Limited).
The Company has reached the final stages in the application
process for planning permission on its site in Staplehurst, Kent.
The Group has submitted plans for the development of a 'Retirement
Village', which would comprise 48 one and two-bedroom apartments
and a further 32 two and three-bedroom cottages.
In addition, the Company's two remaining houses at 11 High
Street, Edenbridge, are now under offer. The Edenbridge development
comprises a terrace of three starter homes, and the first house has
sold in the last financial year for GBP325,000.
Chris Johnson, CEO, commented: "We are excited to have signed
further option agreements and be advanced in the planning
permission process for our site in Staplehurst. Trafalgar aims to
address the growing demand for specialised housing in the UK and in
line with our strategy, we look forward to providing updates as to
our progress in securing planning permissions, purchasing
properties and developing them."
Enquiries:
Trafalgar Property Group Plc
Christopher Johnson +44 (0) 1732 700 000
Allenby Capital Ltd - AIM Nominated
Adviser and Broker
Jeremy Porter/James Reeve/Liz Kirchner +44 (0) 20 3328 5656
Yellow Jersey PR Limited
Charles Goodwin / Abena Affum +44 (0) 7966 935 994
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END
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