UK Coal is selling over 8,000 acres of land with 42 houses and cottages across several estates between Newcastle upon Tyne and Birmingham in one of the largest let land offerings in recent years. The land represents approximately 20% of UK Coal's agricultural investment portfolio, the guide price for which is £45m.
Farm Business Tenancies account for 5374 acres and 1105 acres are let on Agricultural Holdings Act tenancies. Almost 1200 acres is farmed in hand with the remainder of this mixed rural portfolio occupied on a wide range of other agreements such as commercial and other leases, grazing licences and residential property on Assured Shorthold Tenancies.
As many of the properties are on the urgan fringe, there would appear to be substantial rental growth and development prospects along with opportunities for diversification.
The property is for sale with no development clawback which means that UK Coal is not reserving any financial right to increased value from subsequent sale for development of the property.