The Edinburgh-based property company, Caledonian Trust, experienced a 19% decrease in share prices on Wednesday due to unsuccessful buyer negotiations. The company has responded by announcing plans to list St. Margaret's House, one of its properties in Scotland, for sale in spring 2024, dependent on market conditions.
In addition to the property listing, Caledonian Trust has successfully renegotiated its £4.0 million (GBP1 = USD1.2224) loan agreement with Leafrealm. The revised terms include a lower interest rate, now set at 2% above the Bank of Scotland's base rate, a reduction from the previous rate of 3%. However, Leafrealm maintains the right to reinstate the original interest rate of 3% given a three-month notice period.
The share price drop and subsequent actions underline the challenges faced by Caledonian Trust in navigating the property market. The decision to sell St. Margaret's House and renegotiate loan terms with Leafrealm are strategic moves aimed at stabilizing the company's financial position and shareholder value.
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