London Town announced on Thursday that it had exchanged unconditional contracts for the sale of its site at Hopton Street for £10.8 million, though the buyer was not disclosed.
The site has planning permission to build a 20-storey mixed use building – though local opponents are taking their fight against the proposed development to the European Court of Human Rights.
The sale price is £400,000 less than the carrying value of £11.2 million shown in the company's interim report at 30 June 2004.
A London Town statement says that the proceeds will be used to repay debt and provide working capital for the company's continuing activities relating to property development in the South East of England.
London Town also announced the resignation with immediate effect of John Dodwell as a director of London Town though he will continue to provide consulting services to the company.