24 June 2009
TRAFALGAR NEW HOMES PLC
COMPLETION OF SALE OF DEVELOPMENT
The Board of Trafalgar New Homes plc ("Trafalgar") are pleased to announce
that, after a long and protracted negotiation, they have sold the land and the
part completed development of 9 terraced houses in Mitcham Surrey, to Wandle
Housing Association ("Wandle") on 17 June 2009, for the following sums:
* Land £1,120,672.00
* Building works to date £845,430.00
* Less retentions £168,077.00
* Amount received £1,798,024.10
* Less loans redeemed to principal banker and others £1,647,282.51
In addition to the above, a separate agreement has been entered into by
Trafalgar New Homes plc to complete the development for the sum of £833,570.00,
payable upon valuation by Wandle's agents.
This transaction was forced upon Trafalgar due to the current economic crisis
and housing `crash', which was compounded by the fact that Trafalgar's
principal banker would not advance anymore money to complete the development
without guaranteed sales and a possible cash input.
The scheme will show a loss and there is a shortfall. The Board are in
negotiations with various creditors to persuade the parties to accept shares in
lieu of cash.
The Board continues to look for new business opportunities. Further
announcements will be made when appropriate.
The Directors of the issuer accept responsibility for this announcement.
For further information please contact:
TRAFALGAR NEW HOMES PLC 07836 722 840
Andy Moore
SVS SECURITIES PLC 020 7638 5600
Ian Callaway