Store plan to make way for news homes

A LARGE site in Newton-le-Willows, Merseyside initially earmarked for a new supermarket has been sold by asset manager Gresham House to Persimmon Homes for £7.25m.

The sale signals Gresham has abandoned plans to build the new store at the Deacon Trading Estate site, off Earle Street, Earlestown which would have resulted in 250 jobs.

A deposit and initial payment of £944,610 has been paid for the the 25.8 acre site with the balance to be paid in three tranches over the next 42 months.

The asset was being carried in the balance sheet at 31 December 2014 at a discounted value of £6.81m.

In addition, Gresham House will be entitled to an overage payment in the event that Persimmon Homes achieves a selling price in excess of an agreed amount per square foot.
 
Following negotiations, it has been agreed that the facility with the Co-op Bank be reset at £2.85m after £428,000 of the initial proceeds from the sale have been applied in reducing the amount outstanding.

The new arrangements have a two year term.