Caledonian Trust Says Brunstane Properties Construction Delayed

LONDON (Alliance News) - Caledonian Trust PLC on Friday said that construction of two new ...

Alliance News 17 February, 2017 | 5:10PM
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LONDON (Alliance News) - Caledonian Trust PLC on Friday said that construction of two new semi-detached houses in Edinburgh, Scotland, has been delayed as the building contractor has gone into liquidation.

Back in September it entered into an agreement with Leafrealm Ltd, a company controlled by its Chairman, Chief Executive and major shareholder Douglas Lowe, for up to GBP360,000 in order to provide funding for the construction of two new semi-detached houses at Brunstane Road South, Edinburgh.

So far GBP310,000 has been drawn down under this facility.

Whilst construction was originally envisaged to be complete by the end of January, there have been delays as the building contractor, Richmond Homes Scotland Ltd, appointed a liquidator in February.

As a result of this, it is now seeking a replacement building contractor, with work expected to complete in the second quarter of 2017. It plans to repay the amounts drawn down under the loan facility from the future sale proceeds from the buildings.

In the meantime, Leafrealm has provided an additional GBP100,000 loan to the company for further working capital, separate to the one currently in place.

Shares in Caledonian Trust were untraded Friday, last closing at 127.00 pence.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Caledonian Trust PLC 127.50 GBX 15.38 -
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