Urban Exposure hits out at Pollen Street over deal termination

AIM-listed property financier Urban Exposure has said it may seek further action after Pollen Street Capital’s Honeycomb Holdings withdrew from purchasing its loan book, under the terms agreed. The lender said it has received notice of termination for the deal, which had been scheduled to complete today. Urban Exposure said it considered the decision to be “without merit and reserves its position to take all measures to enforce its rights under the sales and purchase agreement”. This would include, “without limitation, seeking specific performance of [Honeycomb’s] obligation” to acquire its loans business. Honeycomb last week told Urban Exposure that wanted to drop its purchase of Urban Exposure’s loan book on the terms they had agreed. Under the deal, Urban Exposure Lendco was set to be sold to Honeycomb for £113.8m, and its asset management unit, Urban Exposure Amco, to its founders for £1.6m. The asset management business would have continued to provide services to the loans business after the two are separated. Once those deals were done, the listed entity would be delisted from AIM, renamed Residential Property Finance Realisation and placed into a voluntary liquidation, from which shareholders would receive 72p per share plus a final dividend of around a penny. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette