Rescission of Purchase Agreem

RNS Number : 4308X

Off-Plan Fund Limited (The)

14 August 2009

 



For Immediate Release

14 August 2009

THE OFF-PLAN FUND LIMITED

(the 'Company' or 'Fund')

Rescission of Purchase Agreements in respect of Canon House, Wallington

In the interim results for the six months ended 31 March 2009, announced on 30 June 2009, the Fund stated that it had been given notice that the lending bank, Bank of Scotland Plc, had appointed a receiver under the Law of Property Act 1925 in respect of the bank’s charge over Henry Homes (Wallington) Limited’s ('HHW') leasehold interest in the site at Canon House, Wallington.  Owing to the fact that this constitutes an insolvency event of default under each of the purchase agreements entered into between the Fund and HHW in respect of the 118 residential units which were to comprise part of the proposed Canon House development in Wallington (the “Agreements”), the Fund has exercised its right to rescind each of the Agreements.

This rescission entitles the Fund to have the deposits it paid under the terms of the Agreements, amounting to £1.1 million in aggregate (the 'Deposits'), repaid by HHW and releases the Fund from any further obligations in respect of the scheme.

In accordance with its contractual rights, the Fund is entitled to and will seek to secure the return of the Deposits as soon as is practicable. Should HHW fail to repay the Deposits within 7 days the Fund may elect to petition for HHW to be wound-up and thereby ultimately trigger the repayment of any outstanding amount by Zurich Insurance Company (trading as Zurich Municipal) which has guaranteed the return of the Deposits to the Fund in the event of such a winding-up.

The Fund will also, in accordance with its contractual rights, seek to secure the return of the sum of £3 million held by AIB Bank (CI) Limited ('AIB') as collateral for a completion guarantee provided by AIB to HHW's lending bank in respect of the Fund's obligations under the Agreements, now rescinded.

This process is likely to take a number of weeks depending upon the actions of relevant third parties and there will be a further announcement in due course.

List of Contacts:

Development Capital Management

Roger Hornett

Andy Gardiner

020 7355 7600

John East & Partners Limited, a 

subsidiary of Merchant Securities Plc

(Nominated Adviser)

Bidhi Bhoma/Simon Clements

020 7628 2200

Buchanan Communications

Charles Ryland

Isabel Podda

020 7466 5000 

 

END

 

 

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