Brick producer Michelmersh agrees £4.6m land sale in Shropshire

BRICK manufacturer Michelmersh has sold off the site of a former factory in Shropshire to a housing developer in a deal worth almost £5m.

In an announcement to the London Stock Exchange Michelmersh said it had exchanged contracts with Bovis Homes on the sale of the 15-acre former factory site adjacent to its brickworks in Telford for £4.6m.

The deal breaks down as £1.6m payable on completion, with the outstanding £3m paid in equal instalments on the first and second anniversary of completion, which is expected to take place within the next four months once certain conditions have been agreed.

Michelmersh said the proceeds of the sale would be used to reduce the group’s borrowings and to meet the cost of the site re-organisation and taxation arising from the sale.

The group’s audited accounts for the year ended December 31, 2012 included the land as an asset worth £3.35m, this being the estimated sales proceeds less the associated costs of the sale and estimated costs of reconfiguration of the continuing operational brickwork site.

Martin Warner, CEO of Michelmersh 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.”