Caledonian Trust (AIM:CNN)’s share price was dented today after a major property sale fell through and it said re-marketing was delayed until midway through 2024 as it waits for better market conditions.
The company issued an update on St Margaret’s House (SMH), its largest property which is located at 151 London Road in Edinburgh, this morning.
It said today that talks with potential buyers had fallen through and not resulted in a sale agreement despite several non-binding proposals.
In March, the company said in its interim results for the year ending in December 2022 that it had set a closing date for indicative offers on the property for 23 February 2023.
It had already received non-binding proposals from three separate interest bidders.
At the time it said it had chosen a preferred bidder after “careful consideration and analysis of each of the proposals has led us to select a preferred bidder and enter into an exclusivity agreement with them”, and that it would agree to formal terms for a sale by the end of April 2023.
“The company is now formally proposing to market the SMH property in the Spring of 2024, provided market conditions continue to improve,” the trust said in an update today.
It added that it has reduced interest payments on a loan agreement with Leafrealm Ltd for over £4 million first agreed in 2016, from 3% over the base rate, to 2%.
Caledonian Trust (AIM:CNN)'s shares fell 18.75% after the markets opened on Wednesday, from a closing price of 160p to an opening price of 130p, according to data from the London Stock Exchange.