Port sale looking to be Anglo-French partnership

The long-awaited deal had expected to see Oakdene, which is currently building hundreds of flats on the waterfront, take control of the port and develop surrounding land.

But now Societe d'Economie Mixte Locale de Co-operation Transmanche, a limited French company largely owned by the Department of Seine-Maritime, will hold on to the operational side.

In a statement, Oakdene said: 'As we announced in August 2007, heads of agreement were reached with Societe d'Economie Mixte Locale de Co-operation Transmanche (SEML) for the purchase of Newhaven Port and Properties which owns the ferry terminal and 147 acres of residential and commercial developable land around the seafront and harbour at Newhaven.

'Following further discussions, it is now likely that Oakdene will develop the land in joint venture with SEML / NPP, which will relieve Oakdene of the obligation to own and operate the ferry port.'

The announcement comes at the same time as Oakdene reported a drop in its share price because two deals, including one in Newhaven, did not take place.

The price fell more than 30 per cent to 67p a share on Thursday last week after it said in a trading update that pre-tax profit for last year would be 'materially below market expectations, but not less than 5 million'.

A statement said: 'This is principally as a result of trading during the last three months of the year being significantly below the board's expectations and two anticipated major transactions not completing before the year end.

'The first was in respect of a bulk sale to investors of additional units at the group's flagship Newhaven development.

'Construction of the first phase comprising 111 units was completed before the year end, and sales are proceeding at a satisfactory rate. We therefore expect that these units will now be sold to individual purchasers during 2008.'