30th Jul 2014 09:22
LONDON (Alliance News) - Schroder Real Estate Investment Trust Ltd Wednesday said it has exchanged contracts to sell its site at Coventry Road, Hinckley for GBP4.5 million, on a subject to planning basis, to housebuilder Redrow PLC.
Schroder said the sale price is above the independent valuation for the site as at June 30 of GBP3.85 million.
The property comprises a 9.1 acre former industrial site close to Hinckley town centre and is currently vacant and non-income producing. Schroder Real Estate last August secured an outline planning consent for 122 residential units, and under the terms of the transaction, Redrow is obliged to make a detailed residential planning application within three months of exchange of contracts at its own cost.
Schroder Real Estate will get half the sale price on completion of the deal, and the other half nine months later secured as a charge over the land. Schroder could also get further payments depending on the selling prices that Redrow manages to achieve for the residential property built on the site.
"The disposal of this asset is consistent with the company's strategy to maximise value from low or non-income producing property" Schroder Real Estate said in a statement.
The trust's shares were up 0.8% at 51.80 pence Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Schroder Real