One Heritage Group plc: Development Management Agreement update on One Victoria, Manchester
One Heritage Group PLC (LSE: OHG), the UK-based residential developer, development manager and property manager focused on the North of England, is pleased to provide an update on its development management agreement (RNS 05 April 2022) with its client, One Heritage Great Ducie Street Limited. The client, One Heritage Great Ducie Street Limited, is a development company subsidiary of One Heritage Property Development Limited (the “Developer”), the Company’s Hong Kong based majority shareholder. The development management agreement relates to a residential development on land located between Great Ducie Street and Mirable Street, Manchester (the “Site” or the “Project”).
The Company is pleased to advise that following the signing of a construction contract between the Developer and Torsion Construction Limited yesterday, fees for the Company of 2% of ongoing total development costs have been secured and are payable over the anticipated development period. These fees are expected to be in the region of £20,000 per month until practical completion in Q2 2025. The Company will also be entitled to 15% of the net profit generated, which will be distributed following the legal completion of the sales for all units. Prior to the signing of this construction contract, in the financial year to June 2023, the Company earned £206,000 in project management fees, and another fee of £225,500 for the raising of construction debt in respect of this project.
The Site named One Victoria (not to be confused with the Company’s own Victoria Road, Eccleshill proposed development where it is itself the developer) comprises two parcels of land with an existing building on one. It is located close to One Heritage Tower, a scheme where the Company also has a 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 Project is expected to have a gross development value of circa £39.1 million and practical completion is scheduled for Q2 2025.
Jason Upton, Chief Executive Officer of One Heritage, commented: “One Victoria is a significant regeneration project in the heart of Manchester and we are pleased to be involved as Development Manager. Now that a construction agreement between our client and Torsion Construction Limited has been signed, our recently strengthened team looks forward to managing the successful delivery of this significant city centre project.”
Chief Executive Officer
Chief Financial Officer
Hybridan LLP (Financial Adviser and Broker)
Claire Louise Noyce
Tel: +44 (0)203 764 2341