Trafalgar Property Group PLC Trading Update
The Board of Trafalgar Property Group plc, 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, 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, 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:
Trafalgar Retirement has entered into Options to acquire four adjacent properties for an aggregate consideration of £4.7 million. Plans have been drawn up for the development of the site into a 48 unit assisted living scheme.
Trafalgar Retirement has entered into Options to acquire four adjacent properties for an aggregate consideration of £5.0 million. Plans have been drawn up for the development of the site into a 51 unit assisted living scheme.
Trafalgar Retirement has entered into Options to acquire six adjacent properties for an aggregate consideration of £3.2 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 £325,000.
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.”