This strategic shift will see the group focus on the core residential sectors, while exiting the co-living services space.

As part of the former, OHG will deliver apartments under a new ‘living’ brand and houses under a new ‘homes’ brand. The latter will see OHG discontinue management of co-living properties.

The company’s management has cited rising construction costs, increasing operational expenses and weakening investor demand for the change.

The developer will be rebranded as Zentra Group to also “distance itself from any potential reputational risks associated with the One Heritage brand in Asia.” The firm had primarily marketed to co-living investors through the Hong Kong network of OHPD, its majority shareholder.

As part of this, the group is restructuring its debt.

This has included entering a new £7m loan agreement with OHUK, a company connected with OHPD. The interest on this facility is 6% with a repayment date of 31st December 2025, but with an option to extend by up to 36 months.

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Elsewhere, the group has made a £3m strategic investment in One Victoria, buying a 30% stake in the company that owns the Manchester development. This has been funded by drawing down from the group’s remaining shareholder loan facility.

Scheduled for completion in the second half of 2025, the 129-apartment One Victoria unit has a GDV of £39.5m. OHG will continue to oversee development of this site.

Simultaneously, OHG has sold £7m worth of completed residential and commercial properties to OHUK. With £2m of debt linked to its Oscar House property in Manchester as part of this transaction, the net proceeds of the sale will reduce to £5m and will be utilised to reduce the group’s existing shareholder loan facility from £14m to £9m.

In terms of personnel, Scott Nichol has been appointed head of investments with Ben Scandrett as head of development. Interim head of finance Robert Holbrook will continue in this capacity on a part-time basis.

In the RNS announcing these changes, the company’s management added: “[These changes] represent a pivotal moment in the company’s journey. By realigning operations with the current market environment, reducing the debt burden and focusing on core residential strengths, the company is positioning itself for long-term success.”