Business
Acquisition of site for assisted living scheme
Acquisition of site for assisted living scheme.
About this update from Trafalgar Property Group Plc
[{"type":"text","content":"\n \nRNS Number : 8708W Trafalgar Property Group PLC 24 April 2019 \n\nPrior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\"). With the publication of this announcement, this information is now considered to be in the public domain.\n \n24 April 2019\n \nTRAFALGAR PROPERTY GROUP PLC\n(\"Trafalgar\", the \"Company\" or \"Group\")\n \n£2.3m acquisition of development site for assisted living scheme; Investment by CEO \n \nThe Board of Trafalgar (AIM: TRAF), the AIM quoted residential and assisted living property developer, is pleased to announce that Trafalgar Retirement+ Limited (\"Retirement+\"), through its new wholly owned subsidiary, Randell House Limited (\"Randell House\"), has exchanged contracts to acquire its first site for the development of an assisted living scheme for £2.3 million (the \"Acquisition\"). \n \nThe Acquisition is a 1.3 acre site in Camberley, Surrey, currently consisting of a former nursing home and with an estimated site value of £2.95 million. The site has planning permission for the demolition of all buildings and for the development of 37 two-bedroom units for an extra care and assisted living scheme, which Retirement+ estimates has a Gross Development Value (\"GDV\") of £15.1 million, with a variation option for an additional 15 units (subject to planning permission), with a consequent GDV estimate of £21.2 million. \n \nRandell House intends to develop the units for purchase by owners, who would then receive care in their own homes. Owners will also benefit from other on-site services such as catering, health and wellness, cleaning and communal living spaces. It is expected that the development would be ready to start receiving reservations towards the end of 2019, with the scheme ready for occupation in early 2021.\n \nRandell House is paying £2.3 million in cash for the Acquisition, which together with costs will be financed by a loan to Randell House of £360,000 from Chris Johnson, CEO of the Company (the \"CEO Loan\"), and the balance being provided by a lending institution (the \"Institution Loan\"), for which offers have been received and the terms of which are due ...