Wednesday, April 18, 2012

News: Oak's losses continue following YES! Project termination


Oak Holdings has reported on a "difficult year" following the termination of the developer agreement for the YES! Project in Rotherham and the short term lease and associated management agreement for Rother Valley Country Park.

The delayed £350m proposal was set to create the largest undercover leisure based scheme in Europe but in January 2011, Rotherham Council terminated the development agreement relating to the YES! Project between RMBC, Oak Ventures Limited and Oak Holdings plc.

Oak took over the management of the well visited park as part of the developer agreement but the council terminated this agreement in October 2011 and the management of the park was brought back under the direct control of the council.

Oak Holdings plc has been temporarily suspended from the AIM stock exchange since then but trading has now been restored following a creditors' voluntary arrangement, new directors and a new investment strategy.

The company will be renamed Pires Investments and hope to raise £1m through a placing of new shares to fund the CVA and to pursue the new approved investing policy.

The company posted losses of £1.7m for the year ending October 31 2011. The loss included selling land bought for over £1m that was due to be used as access to the A57 for the YES! Project. The land has "little value above the bare agricultural value at which it is being sold back to the vendor."

Oak Holdings posted a loss before tax of £11.48m last year as a result of failing to prevent the termination of the developer agreement for the YES! Project.

Oak entered into a preferred developer agreement with Rotherham Council in May 2003 and the development agreement was signed in August 2008. Outline planning approval was granted in 2007 and updated plans for outline planning were approved in September 2010. The agreement was terminated by the council after Oak made a "material lack of progress."

The Council's cabinet selected new preferred developers in August 2011, China Vision Ltd and regeneration specialist MCD Developments. Their Visions of China project will be a £118m, 120 acre cultural theme park set in an authentically built and landscaped Chinese environment combining a range of experiences and activities for visitors.


Supported by:
More news...

  © Blogger template Newspaper III by 2008

Back to TOP