Sutton Harbour seeking shareholder approval for apartment sale

22nd Sep 2023 15:43

(Sharecast News) - Waterfront regeneration specialist Sutton Harbour Group confirmed the sale of an apartment in their ongoing 'Harbour Arch Quay' project on Friday.

The AIM-traded company said the apartment, sold for £475,000, was acquired by Beinhaker Design Services (BDSL), with the transaction finalised at the initially advertised asking price, consistent with other apartments in the same development.

It was not the first interaction with the Beinhaker entities, as another unit in Harbour Arch Quay was previously sold to Beinhaker Design Group at around its marketed asking price.

However, the particular sale was distinguished as a 'substantial property transaction' under the Companies Act 2006.

Due to its significance, the deal would need shareholder approval in an upcoming general meeting.

Sutton Harbour said it would send a formal notice for the general meeting scheduled for 12 October.

The meeting would aim to acquire the necessary approvals before the official completion of the apartment purchase.

Sutton Harbour described Harbour Arch Quay as an exclusive development of 14 luxury apartments.

The company said it had exchanged contracts on 13 apartments, including the recent sale to BDSL.

It said the final apartment was currently reserved, awaiting the finalisation of its contract.

"The sale represents a related party transaction under the AIM Rules for Companies, as BDSL represents 56% of the holdings of FB Investors, which holds a 75.38% holding in the company and is controlled by the Beinhaker family, including Corey Beinhaker and Philip Beinhaker, each a director of the company," the firm explained in its statement.

"The directors who are independent of the transaction, being Graham Miller, Sean Swales and Natasha Gadsdon, having consulted with the company's nominated adviser, Strand Hanson, consider that the terms of the transaction are fair and reasonable insofar as shareholders are concerned."

At 0841 BST, shares in Sutton Harbour Group were down 3.23% at 15p.

Reporting by Josh White for Sharecast.com.