Dukemount Capital PLC (LON:DKE) saw its shares rise on Christmas Eve after it announced that it has forward-funded and pre-sold the first project in West Derby to a segregated mandate limited partnership managed by Alpha Real Capital.
The long-dated income provider and property management company said this will result in the limited partnership acquiring the building, providing the financing for the redevelopment and paying a premium to Dukemount upon practical completion.
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It added that the first stage of the process will result in a payment to Dukemount of £570,000 for the enhanced value of the site and the preliminary costs, with the total funding package from Alpha for the complete development being £3mln.
The West Derby project involves the demolition of a large existing building and the development of a purpose-built structure with 17 apartments for the supported living sector and 3,200 square feet of retail space.
Dukemount Capital will be responsible for the management and development of the property to the exacting requirements of the supported living housing association and care provider, in accordance with the terms of the 50-year lease they have signed on the property.
The group’s executive chairman Geoffrey Dart commented: “A roadmap has been created which we expect will achieve a smoother timescale for future acquisition and development completions.”
He added: “Our pipeline for 2019 is currently looking very promising and I look forward to updating investors as opportunities arrive."
In early morning trading, Dukemount Capital shares were 10.5% higher at 0.315p.