24 Jan 2011 09:23
24 January 2011
Oak Holdings plc
Termination of development agreement
The Board of Oak Holdings plc ("Oak" or the "Company") announces that Rotherham Metropolitan Borough Council ("RMBC") has issued it with a notice stating that it intends to terminate the current development agreement relating to the YES Project between RMBC, Oak Ventures Limited and Oak Holdings plc with effect from 31 January 2011.
Oak entered into a preferred developer agreement with RMBC in respect of the YES Project in May 2003. There was then a protracted period during which Oak sought and obtained the various planning permissions needed and then negotiated the development agreement deriving from the preferred developer agreement which was finally signed in August 2008. Since then, the global financial crisis and depressed property markets have resulted in Oak being unable to secure the funds needed to commence the development phase of the project. As a result of these challenges, and notwithstanding Oak's renewed planning consent on the YES! Project, RMBC has taken the decision not to extend, and cancel the current development agreement.
The Board is currently reviewing its options in respect of the notice but there is no indication at this stage that RMBC will agree to cancel the termination notice or extend the current development agreement. If the situation changes a further announcement will be made.
Oak will continue to manage the Rother Valley Country Park in accordance with the interim management agreement. Oak continues to own the valuable freehold of the A57 land adjacent to the site of the YES Project - the consented access land. Oak is also engaged in a consultancy project in the Czech Republic which is continuing and a longer term UK consultancy project. Oak's Ringwood Town & Country Experience businesses and assets are not affected in any way by this announcement.
The Board continues to believe that there are opportunities for the Company to grow and develop a viable property management and consultancy business.
Enquiries:
Oak Holdings plc
Steve Lewis
Tel: 020 7493 5522
Nominated Adviser to Oak
Cairn Financial Advisers LLP
Tony Rawlinson
Tel: 020 7148 7900