Caledonian Trust PLC Update on Brunstane development and further loan (2304X)
18 February 2017 - 3:06AM
UK Regulatory
TIDMCNN
RNS Number : 2304X
Caledonian Trust PLC
17 February 2017
17 February 2017
Caledonian Trust plc
("Caledonian Trust" or the "Company")
Update on Brunstane development and additional unsecured loan
from Leafrealm Limited
Update on Brunstane development
On 16 September 2016, the Company announced that it had entered
into an agreement with Leafrealm Limited ("Leafrealm") to put in
place a loan facility of up to GBP360,000 (the "Brunstane Loan
Facility") in order to provide funding for the anticipated costs to
be incurred in the construction of two new semi-detached houses at
Brunstane Road South, Edinburgh, Scotland (the "Construction").
Leafrealm is a company controlled by Douglas Lowe, Caledonian
Trust's Chairman, Chief Executive and major shareholder.
As at the date of this announcement, a total of GBP310,000 has
been drawn down under the Brunstane Loan Facility. The Board
intends to continue to draw down on the Brunstane Loan Facility
until the Construction has been completed.
As previously announced, the Company had entered into a building
contract with Richmond Homes (Scotland) Limited ("Richmond") for
the Construction, which the Board originally had envisaged would be
complete by the end of January 2017.
However, the Construction has experienced unexpected delays with
the building contractor and the Board has recently been notified
that Richmond appointed a liquidator in February 2017. As a
consequence, the Company is now seeking a replacement building
contractor to complete the Construction.
The Board now expects the Construction to complete in Q2 2017.
As previously announced, the Board intends to repay amounts drawn
down under the Brunstane Loan Facility from the future sale
proceeds of the two houses.
Additional unsecured loan from Leafrealm
Leafrealm has provided an additional loan of GBP100,000 to the
Company (the "Further Loan") to provide the Company with further
working capital. The Further Loan is separate to the Brunstane Loan
Facility already in place.
The Further Loan was agreed on the following key terms:
- The Further Loan accrues an annual interest rate equivalent to
the base rate of the Bank of Scotland from time to time (currently
0.25%). Interest shall be paid in quarterly instalments;
- The Further Loan will not be convertible into new ordinary shares in the Company;
- The Further Loan is repayable on demand by Leafrealm giving 12
months and 1 day's written notice requiring repayment;
- The Further Loan has no specific loan maturity date; and
- The Further Loan is unsecured.
Following the provision of the Further Loan, the aggregate
amount advanced by Leafrealm to the Company across the various loan
arrangements (including the amount drawn down under Brunstane Loan
Facility) totals GBP3,990,000 as at the date of this
announcement.
Enquiries:
Caledonian Trust plc
Douglas Lowe, Chairman and Chief Executive Officer Tel: 0131 220 0416
Mike Baynham, Finance Director Tel: 0131 220 0416
Allenby Capital Limited
(Nominated Adviser and Broker)
Nick Athanas Tel: 0203 328 5656
Charles Donaldson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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