Massive £4.6m deal paves way for Telford homes
A massive £4.6 million land sale deal has today been struck – paving the way for 185 properties to be built near a factory in Telford.
The 15-acre plot of land around Michelmersh Bricks' factory in Trench Lock has been sold to housebuilder Bovis Homes. Planning approval to build the homes on the site was granted earlier this year.
It comes after the company, known locally as Blockleys Bricks, revealed plans to sell off the site in February. In a statement to the City today, the company confirmed it exchanged contracts on the sale of the land to Bovis, one of the country's biggest housebuilders.
The deal will see £1.6 million paid to Michelmersh on completion of the deal, with a further £3 million to be paid over the following two years.
The land had been valued at £3.35 million in the company's most recent accounts in December, and that figure is expected to be realised after the cost of the sale and the reconfiguration of the brickworks to allow it to continue operations independent of the land.
Martin Warner, Michelmersh chief executive, said: "The board is pleased to achieve the disposal of this parcel of land which now allows the group to proceed with the ongoing development of brick manufacturing, landfill and other development opportunities both at the Telford site and elsewhere in the group."
The proceeds from the sale will be used to reduce the group's borrowings and to meet the cost of the site re-organisation and taxation arising from the sale.
Michelmersh produces 70 million clay bricks and tiles each year from five subsidiaries across the UK.
The Telford site, which employs 50 people, is expected to continue producing 22 million bricks each year after the land sale.
A new office block is also expected to be built on the remaining land at Trench Lock.
The design includes a village green at the centre of the estate and a park area which could provide allotments and recreational space.
