One Heritage Group plc (OHG)
One Heritage Group plc: Holding(s) in Company

05-Apr-2022 / 12:00 GMT/BST
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Development management agreement

One Heritage Group PLC (LSE: OHG), the UK-based residential developer focused on the North of England, announces that it has signed a development management agreement (the “Agreement”) with One Heritage Great Ducie Street Limited in relation to a proposed residential development on land located between Great Ducie Street and Mirable Street (the “Site”).

The Site comprises two parcels of land with an existing building on one parcel that will be demolished. It is located close to One Heritage Tower, a scheme where One Heritage has an existing development management agreement. The Site will be developed into 129 self-contained apartments across two buildings, one of 10 storeys on Mirable Street, the other a stepped 10 to 14 storey building on Great Ducie Street. There will also be two ground floor commercial units. The Site is expected to have a gross development value of circa £37.4 million and due to complete in Q3 2024.

The Agreement is a related party transaction as the Site is being acquired by a subsidiary of One Heritage Property Development Limited (“OHPD”), which is the majority shareholder in the Company. Mr Yiu Tak (Peter) Cheung is a director of the Company and OHPD.

The Company’s advisory fees for the development management of the Site are agreed at:

• 2% development management fee based on the total development costs and paid over the expected development period;
• 15% of the net profit generated at completion; and,
• 1% of any external debt funding raised.

Jason Upton, Chief Executive, commented: “We are delighted to have been appointed Development Manager for another central Manchester project. The agreement demonstrates further diversification of income and allows us to add further resource, if and when required, to our development team.”

Contacts

Jason Upton

Chief Executive Officer

Email: jason.upton@one-heritage.com

Luke Piggin

Finance Director

Email: luke.piggin@one-heritage.com

Hybridan LLP (Financial Adviser and Broker)

Claire Louise Noyce

Email: claire.noyce@hybridan.com

Tel: +44 (0)203 764 2341