11 December 2024
ZENTRA GROUP
PLC
(“Zentra”, “the
Company” or “the Group” or “ZNT”)
Zentra Group plc:
Transition to Aquis and Strategic Update
Zentra Group PLC (the “Company” or
“Zentra”), the UK-based residential developer and development
manager, is pleased to provide an update on in its transition to
the Aquis Stock Exchange and its restructure.
Transition to
Aquis Stock Exchange
As part of the Company's ongoing
evolution, Zentra is pleased to have transitioned from the Main
Market of the London Stock Exchange ("LSE") to the Access Segment
of the Aquis Stock Exchange Growth Market ("AQSE"). This transition
reflects the Company's size and objectives, aligning more closely
with AQSE’s growth-focused market. The Board believes that AQSE
offers a more suitable platform to support Zentra's ambitions and
that it will help position the Company for future
growth.
The move is expected to unlock
increased visibility and access to a more suitable investor base,
supporting Zentra's commitment to sustainable growth and long-term
value creation. The transition will enable the Company to operate
within a market that better reflects its current stage, positioning
it for further success in its core residential sectors.
Strategic
Realignment and Restructuring
The past year has been
transformative for Zentra as the Company has implemented a
significant restructuring plan to streamline operations and better
position itself within the UK residential development market. This
transformation includes the discontinuation of its co-living and
in-house construction businesses, in favour of a single focus on
delivering high-quality residential apartments and
houses.
The key aspects of this
restructuring are as follows:
-
Operational Focus on Core Residential Sectors
Zentra has honed its business strategy to two key areas of
residential development:
-
Zentra Living – delivering modern,
vibrant residential apartments aimed at professional urban
dwellers.
-
Zentra Homes – providing family
houses tailored to individuals seeking traditional housing
options.
This dual-brand strategy enables
the Company to target a broader spectrum of the residential market,
creating distinct offerings for both professionals and families. By
moving away from co-living services, which have been adversely
affected by market challenges, and transitioning to more
traditional residential offerings, the Company aims to capture
growth opportunities in the mainstream housing market, which
remains resilient despite broader economic uncertainty.
-
Restructuring of Debt and Capital Allocation
As part of the strategic realignment, Zentra has undertaken a
significant restructure of its debt and capital allocation.
Alongside this, the Company has recently completed both a major
acquisition and sale:
-
Acquisition of One Victoria,
Manchester: The Company recently announced the acquisition of a 30%
stake in the One Victoria project in Manchester for £3 million. One
Victoria, a high-quality residential and commercial development, is
a key addition to the Company’s portfolio. The project, which
consists of 129 apartments and 2 commercial units, is scheduled for
completion in 2025. Zentra will also continue to act as Development
Manager for the project.
-
Sale of Completed Properties:
Zentra also recently announced the sale of a £7 million portfolio
of completed residential and commercial properties. This sale
includes properties in key assets such as Bank Street in Sheffield
and Lincoln House in Bolton, providing valuable capital to reduce
the Company’s debt and strengthen its balance sheet.
In July 2024, Zentra completed the
sale of Seaton House, Stockport, for £600,000. Additionally, the
Company has exchanged conditional contracts for the sale of the
land to the rear of Seaton House, an existing car park, for a price
of £400,000. Completion of this sale is subject to the buyer
obtaining planning approval which is expected in Q1
2025.
Zentra continues to hold a
development management contract on One Heritage Tower, Salford
(with planning permission for 542 residential apartments and 2
commercial units). Any sale secured will generate for the Company a
3% fee of the gross proceeds.
The Company also owns land in
Churchgate in Leicester, and as previously announced, it will be
securing a sale in due course. This process has been delayed due to
a rights of light dispute, with a sale now expected in Q1
2025.
-
Service Agreement with OH UK Holdings
In addition to the changes outlined above, the Company is
also pleased to announce the signing of a new service agreement
with OH UK Holdings, a related party due to it having the same
beneficial owners as Zentra. Under this agreement, Zentra will
provide management and sales services to OH UK Holdings, in respect
of their property portfolio.
The key terms of the agreement
are:
-
A management fee of £50,000 per
annum, or 1.75% of the gross asset value, whichever is
higher.
-
A transaction fee of 2% of the
gross sale price for each property disposed of.
Jason Upton, CEO of Zentra Group,
commented:
“We are excited to announce the
next chapter for Zentra as we transition to AQSE and align our
business for the future. Our renewed focus on residential
development, combined with our recent acquisitions and
restructuring, positions us well for sustainable growth. We are
confident in our ability to help meet the housing needs of
communities across the North of England and look forward to
expanding our development pipeline in the years ahead. Our
strategic partnerships, including the new service agreement with OH
UK Holdings, reinforce our commitment to value creation for all
stakeholders. We are confident that our new direction will deliver
long-term value for shareholders and contribute positively to the
housing shortage in the UK.”
Further updates will be provided in
due course.
Contacts
Zentra Group
plc
Jason Upton
Chief Executive Officer
Email:
jason.upton@zentragroup.co.uk
Robert Holbrook
Head of Finance
Email:
robert.holbrook@zentragroup.co.uk
Hybridan LLP
(Financial Adviser and Broker)
Claire Louise Noyce
Email :
claire.noyce@hybridan.com
Tel: +44 (0)203 764 2341
About Zentra
Group plc
Zentra Group is a property
development and management Company. It focuses on the residential
sector primarily in the North of England, seeking out value and
maximising opportunities for investors. The Company is currently
listed on the Access Segment of the Aquis Stock Exchange Growth
Market, trading under the ticker ZNT.
For further
information, please visit the Company’s website
at www.zentragroup.co.uk The
previous website www.oneheritageplc.com will
automatically redirect to the new website.