One Heritage Group PLC (LSE: OHG), the UK-based residential developer focused on the North of England, is pleased to announce that it has signed an agreement with its majority shareholder to reschedule its loans on more favourable terms.

A loan (the SPC loan) of £1,007,000, with an 18-month repayment term at 12% interest, was entered into with One Heritage SPC on 11 August 2020, later extended by 12 months.

The Company has now repaid this loan in full. At the same time, the Company has increased its £11 million debt facility (the “Facility”) by £1.3m to £12.3m, provided by its parent company and majority shareholder One Heritage Property Development Ltd (OHPD). The Facility carries an interest rate of 7%. OHPD has also agreed that it will not demand repayment of the Facility until the Company can repay without impacting its going concern basis.

Jason Upton, CEO, commented: “We are very grateful to our majority shareholder for its ongoing support by enabling us to pay off the SPC loan and extend the Facility. In so doing, we have improved the interest rate on £1.3 million of debt at 12%  to a better rate of 7% for the Company. As previously highlighted, revenue from our development pipeline is building and the second half of our financial year is looking strong, with a series of practical completions on track and a large proportion of related units either sold or with sales agreed. We look forward to providing further updates in due course.”