Formation Group soars on resolution of Aldgate East issue

21st Mar 2014 11:25

Shares in AIM-listed Formation Group leapt on Friday after the company announced an agreement had been struck that will enable Julius Properties to repay a loan to JV Finance Ventures, in which Formation has a 36.9 per cent interest. The agreement was reached between Julius and Redrow, the housebuilder, over a development on Commercial St, near Aldgate East tube station in London. As a result, JV Finance has received the first three instalments, and it has been confirmed that the instalments due to be made in the next three months will be made in line with the original agreement. Formation shares leapt 32% to 1.95p by 11:30 on Friday. NR