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Adderstone Group in £10 million property disposal deal

Newcastle based property development company, Adderstone Group, has declared their credit crunch has ended and the company will be focussing future attentions on a property development market bolstered by returning confidence.

The Group is celebrating the completion of a significant property disposal deal of their UK Ground Rent Estates subsidiary, totalling £9 million worth of ground rent assets, to a City-based institutional investor, as well as individual commercial investment sales including Kwik Fit on Tynemouth High Street.

This follows on from the disposal of £17 million worth of ground rent assets last year in what was thought to be one of the region’s largest property transactions.

These deals, along with positive annual consolidated trading results of £2.1 million profit on £22 million turnover, have reduced Group debt from pre credit crunch levels of £40 million, to £7 million.

Adderstone Group’s recent activity coincides with the announcement that Group MD, Paul Tognarelli, is to move up to the position of non-executive Director.

Adderstone Group’s recent developments have focused around the vibrant Ouseburn Valley in Newcastle.

Work is due to commence this Autumn on a new 250 bed student scheme, Stepney Yard, that will sit alongside the £17 million Union Square project which was completed in July and opened its doors to 228 students last month.

Further Group projects include a £2 million luxury housing scheme in Beadnell on the Northumberland coast and a residential apartment scheme in Bermondsey, London.

Paul said: “This latest deal is the culmination of a strategy which has seen the Board reduce borrowings and generate the liquidity required to re-focus on our core activity of property development.

“These are exciting times for the entire team at Adderstone Group as we now have the cash reserves to advance through our extensive UK wide development pipeline with a gross development value of in excess of £100 million.”

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