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Trafalgar Property Group boosted by development agreement with DIS Partners Holding
Trafalgar Property Group saw its shares jump 17% on Wednesday after it announced it had signed a memorandum of understanding (MOU) with DIS Partners Holding Luxembourg.
The MOU, which Trafalgar Property Group's subsidiary Trafalgar Retirement + is also party to, will see DIS provide funding for the development of two assisted living facilities of 140 units which Trafalgar Retirement + holds option agreements to acquire.
Chris Johnson, chief executive of Trafalgar Property Group, said: "The MOU is a major step for the company and provides the basis for the necessary funding for Trafalgar Retirement + to fully develop the initial two assisted living/extra care schemes jointly with DIS, subject to securing the required planning permissions. In addition, and subject to the DIS investment criteria being met, the MOU agreement also provides the potential for DIS to acquire further sites over the ensuing four years on the same terms."
If DIS is satisfied that both sites meet its investment criteria following due diligence, studies and surveys the fund will state its intention to acquire the site and fund construction, while Trafalgar Retirement + will prepare relevant agreements for the development.
The initial £2m of generated profits from the sale of units is to be divided 60:40 between Trafalgar Retirement + and DIS, while following profits will be split 75:25 between the two companies.
Regina Durazzini, DIS representative, said: "We are confident that working together with such a professional team and our resources will make these first two assisted living/extra care schemes that we are considering a first step in a long chain of projects in the UK providing quality product to a growing market."
As of 1013 BST, Trafalgar Property Group's shares were up 17.65% at 1.00p.