The Conygar Investment Company PLC (LON:CIC), the property investment and development group, announced today that it has agreed with its partner, Stena Line Ports Limited, to take 100% control of its joint venture development project at Holyhead Waterfront.
The transaction enables Conygar to progress with the scheme as planned and the Company will work towards obtaining detailed planning permission in the coming months. As part of the transaction, the joint venture company, Conygar Stena Line Limited, has granted 999 year leases to Stena of the platform at Soldier’s Quay, which is not required for the waterfront development, and a warehouse which is situated at Soldier’s Point and is currently used by Stena. Conygar has a right to call for a sublease if this warehouse is required for the waterfront development in the future.
As part of the transaction, Stena has repaid £2.5 million to Conygar, which is Stena’s 50% share of a loan the Group made to the joint venture company. As consideration for the sale of its shares in the joint venture company, Stena has received £1 and will receive 20% of the profit after tax of the development once it has completed. For the year ended 30 September 2017, the joint venture company made a loss before tax of £163,762 and had net current assets of £4,372,887.
Robert Ware, Chief Executive of Conygar Investment Company commented: “We are pleased to gain full control of this development project and at the same time still receive the support of Stena Line, who are keen for the project to progress. We and Stena see the considerable economic and social benefits the development will bring to the community of Holyhead and we look forward to delivering the project in the coming years.”