1st May 2018 08:19
LONDON (Alliance News) - Severn Trent PLC on Tuesday said it intends to sell a land in Nottingham through its subsidiary Midlands Land Portfolio Ltd to Persimmon Homes Ltd, part of Persimmon PLC, for GBP21.8 million in cash.
The water company said Persimmon plans to create 830 new homes as well as new leisure areas including play pitches and a new primary school to bring people and jobs into the area.
The sale values the land at GBP21.8 million, Severn Trent said, and it will realise a pretax profit of GBP18.2 million in calendar 2019 from the sale.
Payments will be made in cash, the company said, and phased over the life of the project with GBP2.3 million payable now and the remainder phased evenly over five further annual payments of GBP3.9 million each ending on April 30, 2023.
"This is an excellent example of innovation with public and private sectors working together for the communities they serve and building new homes which are desperately needed in this area," said Andy Smith, managing director of Severn Trent Business Services.
The stock was trading 1.4% higher early on Monday at 1,966.50 pence per share.
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