ONE HERITAGE GROUP PLC
One Heritage Group plc (OHG)
One Heritage Group plc: Admission to Trading on the London Stock Exchange
and First Day of Dealings
23-Dec-2020 / 07:00 GMT/BST
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The issuer is solely responsible for the content of this announcement.
23 December 2020
ONE HERITAGE GROUP PLC
Admission to Trading on the London Stock Exchange and First Day of Dealings
One Heritage Group PLC ("One Heritage"), the UK based residential developer,
is pleased to announce that One Heritage's entire issued ordinary share
capital has today been admitted to the standard listing segment of the
Official List of the London Stock Exchange's Main Market for listed
securities under the ticker "OHG".
One Heritage, has successfully raised GBP930,000 (before expenses) via a
combination of a subscription and a placing with Hybridan of a total 9.3
million new Ordinary Shares with investors at a price of 10 pence per
Ordinary Share (the "Placing Price"). One Heritage's market capitalisation
at the Placing Price on admission will be GBP3.0 million.
Group activities
The Group undertakes development and re-development of new and existing
buildings ("Development Activities") to create self-contained residential
apartments, and the refurbishment of existing residential properties
("Refurbishment Activities") to create Co-living accommodation. The Group
will act as its own principal or as a development manager on behalf of
third-party investors for both Development Activities and Refurbishment
Activities. The Group also undertakes letting and property and facilities
management ("L&PFM") services for these products. All Group activities are
undertaken solely in the UK.
Developed or refurbished properties owned by the Group will then be sold or
retained. Co-living properties will be sold on the open market primarily to
investors through the Group's marketing network in Hong Kong. Schemes of
self-contained apartments will be sold to investors through the Group's
marketing network in Hong Kong or through a forward sale agreement to
institutional investors.
Business strategy and execution
The Group will undertake its activities by deploying a design approach and
L&PFM service levels that are attractive to younger socially mobile
professionals and those seeking more flexible living arrangements. The
Directors consider that the product range of self-contained apartments and
Co-living accommodation, allied with high quality L&PFM services, will
provide a broad appeal to this demographic group.
The initial geographical focus of the Group's activities will be primarily
high demand areas in the North West of England. This demand will be
underpinned by strong economic and employment growth in Manchester, which is
forecast to be one of the UK's strongest performing cities over the next few
years according to Ernst & Young LLP's Regional Economic Forecast. Data from
the Office of National Statistics, predicts that the growth in the number of
households in Greater Manchester between 2020 and 2038 will be 10.4 per
cent. compared to 7.4 per cent. over the previous 10 years. This increased
demand is twinned with structural undersupply of housing which, over the
last 10 years, has shown that the number of net new dwellings is 15 per
cent. less than the growth in households with the Greater Manchester
Economic Forecasting Model showing an increase in employment of 10.7 per
cent. over the same period.
The Group will focus on edge of city centre locations where there are good
transport links or where there is a major local employer to underpin demand
allowing a high-quality housing product to be delivered at a competitive
price point.
Over the next three years, the Company intends to expand its activities to
other locations throughout the UK that demonstrate similar characteristics
to those currently identified in the North West of England, such as in
Yorkshire and the East and West Midlands.
The Group will be involved in the full life-cycle of a property development,
which includes:
· the acquisition of land or existing property;
· obtaining any required revisions to existing planning permission;
· undertaking development or refurbishment to deliver a high-quality
living space;
· disposal of developed or refurbished property to investors; and
· provision of L&PFM services to those investors and to other owners of
self-contained apartments or Co-living accommodation.
The Group employs experienced development and letting professionals, and
where appropriate supplements this experience with external providers. The
structure of the business is intended to establish an alignment of interest
with the Company's stakeholders that will ultimately drive a growing, stable
income for shareholders.
Where the Group undertakes development or refurbishment on its own account,
income will be derived from:
· profit made on the disposal of completed properties; and
· management fees from the provision of L&PFM services to investors who
acquire the properties.
Where development and refurbishment works are carried out on behalf of
third-party investors, additional income will be derived from:
· initial fees for sourcing and structuring land and property
acquisitions;
· development and refurbishment management fees during the period of
building works; and
· a profit share on disposal of the completed properties.
The expectation is that the Group will leverage its marketing network in
Hong Kong to pre-sell a significant number of units. This will de-risk the
exit and improve the ability of the Group to secure debt finance where this
is considered beneficial in improving risk-adjusted returns. The Directors
believe that this strategy will enable the Group to establish a strong
market position, and with its in-house capabilities, to generate new
business opportunities. The Directors are focused on establishing the Group
as a recognised provider of innovative and high-quality residential
developments in the UK and to increase shareholder value (measured in terms
of profitability, dividend income or increased share price), in the medium
to long term.
Board of Directors and Key Management Team
The Company's board of directors is comprised of David Stewart Izett,
Jeffrey Ian Pym, Jason David Upton, and Yiu Tak (Peter) Cheung.
David Stewart Izett is the Non-Executive Chairman and is a fellow of The
Royal Institution of Chartered Surveyors with more than 40 years' experience
of the real estate industry both in the UK and internationally. Jeffrey Ian
Pym is a Non-Executive Director who will chair the Audit and Risk Committee
being a qualified Chartered Accountant and highly experienced Chief
Financial Officer with over 25 years' experience of the real estate
industry. Both have experience of working in companies that have been listed
on the London Stock Exchange. Jason David Upton is the Chief Executive
Officer and Peter Cheung is the Chief Investment Officer, both of whom are
the founders of the Group's business in the UK, with Peter Cheung being a
founder of One Heritage in Hong Kong and a significant shareholder in the
Company.
The Executive Management Team also includes Peter Child who leads the
Group's lettings business, and has over 30 years of experience in the real
estate industry; Martin Crews, who is Development Director, with over 10
years of experience in property development; and Markus Luke Piggin, who is
a qualified Chartered Accountant, a CFA Charterholder and is the Group's
Finance Director. Markus Luke Piggin has previous listed company experience
in a senior finance role.
Jason Upton, Chief Executive Officer, commented "We are excited to bring One
Heritage to the market. We were oversubscribed from a wide range of
investors, which represents a real vote of confidence in the potential for
the business.
We are excited to be one of the first publicly listed residential developers
that also focuses on Co-Living, a growing sector with real promise. We see
the North West as being a continued centre of growth in the UK in the coming
years as the Government invests in levelling up the regions and continues to
invest in infrastructure.
We believe that we can create a lot of value in the residential market and
are excited to part of the solution to tackling the UK's shortage of quality
accommodation."
Contacts
One Heritage Group plc
Jason Upton
Chief Executive Officer
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