Formation flies after receiving Aldgate East payment

11th Mar 2015 10:51

Shares in construction and property developer Formation Group jumped after the group said JV Finance Ventures has completed the payment of the final £2.8m it still owned in relation to the Aldgate East Property development.The AIM-listed company, which has a 36.88% interest in JV Finance Ventures, said it will use the amount received to purchase development properties or to fund its participation is similar ventures.JV Finance Ventures received a £18.4m from housebuilder Redrow in relation to the development, with Formation being subsequently paid a full and final settlement of £6.85m.The group said that £2.4m was invested in a property at 161 Iverson Road in London's West Hampstead in April last year, with an additional £610,000 being put towards to paying expenses and interest.Formation shares were up 21.21% to 2p at 11:02 on Wednesday.