One Heritage eyes fresh start with ‘decisive’ restructure and rebrand

As well as changing its name to Zentra Group, the development company plans to sell a portfolio of assets valued at £7m to reduce debt, acquire a 30% stake in a Manchester apartment scheme it is developing, exit the co-living sector on viability grounds, and delist from the London Stock Exchange.

One Heritage hopes the restructure and rebrand will “position the company for sustainable growth, financial stability, and enhanced market presence”, according to a Stock Exchange filing.

Read the full filing 

Rebrand

Another motivator behind the strategic repositioning of the firm and the rebrand to Zentra is to “distance itself from any potential reputational risks associated with the One Heritage brand in Asia”, which is tied to its majority shareholder, Hong Kong-based One Heritage Property Development Limited.

Earlier this year, two individuals linked to the One Heritage group of companies were arrested in China.

“This new identity gives the company the flexibility to reshape its image in the UK market,” according to the market update.

The name Zentra “stems from a desire to establish an identity that resonates with the company’s strategic repositioning…[and] embodies the values of balance, harmony, and focus, with “Zen” symbolising a sense of calm and mindful approach to property development”, the company said.

Zentra will be split into two divisions: Zentra Homes, which will focus on suburban housing projects, and Zentra Living, which will focus on apartments in the city centre.

“Having two distinct sub-brands allows us to tailor our messaging and marketing efforts more effectively,” said Jason Upton, the company’s chief executive.

“The Living brand will resonate with professionals seeking modern, vibrant living spaces in city centre locations, while the Homes brand will appeal to families and individuals looking for more traditional options.”

He added: “This dual sub-branding strategy helps us to meet the diverse demands of the market while leveraging our expertise in residential property
development.”

Sale of assets

As part of the restructure, One Heritage has sold a portfolio of assets for £7m to OH UK Holdings Limited, a company connected with the Hong Kong-based majority shareholder.

This includes schemes at Bank Street in Sheffield, Lincoln House in Bolton, and Oscar House in Manchester.

With the proceeds of the portfolio sale, One Heritage will reduce its debt from £14m to £9m. £2m of the £7m sale price will pay off separate debt attached to the 27-apartment Oscar House.

Acquisition

One Heritage has exchanged contracts with its parent company to acquire a 30% stake in One Victoria, a 127-apartment project in Manchester, for £3m.

Once the sales and acquisition complete on 29 October, One Heritage will enter into a loan agreement with One Heritage UK, a related party that shares the same majority shareholder as One Heritage Property Development.

The new £7m facility will be used to pay off the majority of the company’s outstanding debt. The remaining £2m will be written off by the parent company “demonstrating OHPD’s commitment to OHG’s success and financial stability”, according to the market update.

One Heritage has sold Lincoln House in Bolton. Credit: Skywall Photography

Listed status

One Heritage floated on the London Stock Exchange in 2020. The actions being taken as part of the restructure will likely see the company delisted, according to the update.

“The firm will continue to explore its options regarding a transition to the Aquis Stock Exchange, or the implementation of a Matched Bargain Facility or a complete delisting,” the filing states.

What about the tower?

An update in the Stock Exchange filing on One Heritage’s most high-profile scheme, a 55-storey tower in Salford’s Greengate district, was brief: “The company has an ongoing development management agreement and has agreed updated terms, which includes a 3% fee of any land sale.”

Any other business

The restructure follows the appointments of two individuals charged with taking the company through its next chapter; Scott Nicol has been appointed as head of investment and Ben Scandrett has been appointed as head of development.

Co-living is off the table going forward due to “rising construction costs and higher operating expenses”, as is in-house construction; third-party contractors will be used for all schemes.

Overall, the firm said the steps it has taken to restructure the business amount to “decisive” action.

“OHG has taken decisive steps to adapt and strategically realign its operations.

“The restructuring of One Heritage Group PLC and its rebranding to Zentra Group PLC represent a pivotal moment in the company’s journey…positioning itself for long-term success.”