LONDON: Trafalgar Property Group PLC (AIM: TRAF) said Tuesday it has acquired a 10% equity interest in Hilton House, a commercial property in central Stockport, Manchester, for £350,000, marking a substantial transaction under AIM Rule 12.
The interest was purchased from Trafalgar director Paul Elliott. Payment will be made through a mix of newly issued equity and a convertible loan note.
As part of the deal, Trafalgar will issue 366.7 million new ordinary shares at £0.0003 per share, valued at £110,000. Following the issuance, Elliott will hold approximately 29.43% of Trafalgar’s fully diluted issued share capital.
The remaining £240,000 of the purchase price will be covered by an unsecured convertible loan note, also priced at £0.0003 per share. The note’s conversion is subject to shareholder approval if it would lift Elliott’s stake above the 29.9% threshold.
Hilton House, valued independently at £3.5 million, is a vacant 1970s-era office complex comprising four interlinked blocks — three three-story buildings and one eight-story tower — with 68 parking spaces. Trafalgar said the property has redevelopment potential as a residential or mixed-use site, pending future planning consents.
The company said the acquisition offers exposure to future rental income and capital gains from any sale of the property. Trafalgar’s 10% stake grants it rights to a proportionate share of both.