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GBP250,000 LOAN TO THE HOMEBUILDING CENTRE LTD
Capital for Colleagues, the ISDX-quoted investment vehicle focused on opportunities in the Employee Owned Business sector, has announcde that it has made a loan of GBP 250,000 to The Homebuilding Centre Ltd.
HBC owns the trade and certain assets of the National Self Build and Renovation Centre, which comprises a substantial permanent exhibition centre and trading hub, based at Swindon, which promotes awareness of the opportunities available to consumers seeking to secure their own home and, increasingly, to local authorities and housing associations seeking to provide affordable housing. Importantly, NSBRC also generates trade with suppliers to the construction industry, including construction related businesses in which Capital for Colleagues is already a stakeholder.
The proceeds of the Loan will be used by HBC for general working capital purposes. In conjunction with the Loan, Capital for Colleagues has been allotted shares representing 25% of HBC’s issued equity capital. A new Employee Ownership Trust holds the remaining 75% interest. The Loan is secured on the assets of HBC and is for a fixed term of 12 months, bearing interest at a rate of 15% per annum. At the end of the 12-month term, the Loan is repayable, renewable or convertible into participating preference equity in HBC, at the Company’s option.
The investment in HBC increases Capital for Colleagues’ portfolio to ten, underlining the Company’s commitment to becoming a leading entity within the growing EOB sector.
John Eckersley, Chief Executive of Capital for Colleagues, said, “We remain focused on the continued growth and development of our investment portfolio, which now comprises ten diverse, commercial unquoted EOBs. As a specialist conference and exhibition business, HBC represents a compelling investment opportunity, which further expands and diversifies our current portfolio. Through its focus on the construction industry, HBC importantly complements our existing investments, which includes a number of companies operating within this space, creating the potential for cross-selling opportunities.”
