RCS - Boot(Henry) PLC - Henry Boot completes sale of I&L development site

Henry BootAnnouncement

13/11/2024 07:15

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RNS Number : 9633L  Boot(Henry) PLC  13 November 2024

Hallam Land completes sale of industrial & logistics development site

 

Henry Boot has announced that its land promotion and planning business, Hallam
Land, has completed the sale of 52 acres of land for development at Pickford
Gate, Coventry to Royal London Asset Management Property, the UK-based
investment management company for an undisclosed sum. The sale has resulted in
an ungeared internal rate of return for Henry Boot of 21.8% p.a.

The site has outline planning consent for circa 645,000 sq ft of new
employment space comprising primarily industrial and logistics, as well as
research and development facilities.

Hallam Land secured an initial planning promotion agreement with the
landowners to promote the wider 'Pickford Gate' site in 2015. A planning
application was submitted in 2018 which secured outline planning consent in
2021 for the 52-acre land parcel, as well as 2,400 homes, of which at least
25% are proposed for affordable housing, a primary school, district and local
centres, green open spaces, community facilities and playing fields.

This is Hallam Land's third sale at Pickford Gate, following the disposal to
UK housebuilders, Countryside Partnerships (247 plots) in March 2023 and David
Wilson Homes (491 plots) in September 2024. Hallam Land retains a further
1,662 plots for future sale.

The wider scheme includes the delivery of a new road junction which connects
it directly to the A45 dual carriageway, providing access to Coventry,
Birmingham and other key arterial roads. Hallam Land secured funding through
the Homes England Housing Infrastructure Fund (HIF) process to deliver the
junction, which was completed successfully in April 2024.

Shoosmiths LLP advised Hallam Land on the sale with property agents
Newton LDP and Hollis Hockley acting for Hallam Land and the landowners.

Tim Roberts, CEO at Henry Boot, commented: "This latest deal at Pickford Gate
marks another successful outcome on behalf of both our shareholders and the
landowners we have partnered with on the project. Pickford Gate will have a
huge impact, transforming the local area, delivering much-needed homes and
employment opportunities. We look forward to seeing the next phases of the
development come to life."

James Orr, Head of Industrial & Logistics at Royal London Asset Management
Property, said: "This acquisition aligns with our strategy to repurpose
capital and enhance portfolio value. Together with our Development Manager,
Graftongate, we are committed to creating best-in-class facilities for
industrial and logistics occupiers, prioritising high-quality environments
with advanced ESG standards.

 

Our proposed scheme at Pickford Gate offers an exceptional opportunity, thanks
to its prime location and strategic road connections, to bring much-needed
multi-let mid-box space to a market currently dominated by large-scale
logistics. We anticipate strong interest, particularly in this under-served
regional sector."

 Pinsent Masons and BNP Paribas advised Royal London Asset Management
Property.

 

ENDS

 

Notes to editors

 

Henry Boot is one of the UK's leading land, property development, home
building and construction businesses - and we've been transforming land and
spaces since 1886. Listed on the London Stock Exchange since 1919, we're
renowned for quality, expertise, delivery and a partnership approach across
the group - which comprises, Hallam Land, HBD, Stonebridge, Henry Boot
Construction, Banner Plant and Road Link.

Operating across the UK, and employing over 500 people, we focus on three key
markets: urban development, industrial and logistics and residential. Hallam
Land has facilitated 52,000 new homes since 1990, managing one of the top five
largest land portfolios in the country, with the potential to facilitate over
100,000 homes. HBD manages a development pipeline of £1.3bn, the equivalent
of 7m sq ft of developments across our key

markets, while maintaining a £113m investment portfolio, of which 73% of the
properties have an EPC rating of 'C' or higher. Stonebridge, our jointly-owned
home building business, manages a land portfolio capable of delivering 1,500
homes, with an ambition to deliver up to 600 new homes a year.

Henry Boot Construction has extensive experience in both the public and
private sectors, including major projects such as the £200m regeneration of
Barnsley town centre, and The Cocoa Works, a £57m residential development in
York. For over 65 years, Banner Plant has supplied construction products and
services, operating from seven regional depots in the North of England.

We have also developed an ambitious Responsible Business Strategy to help us
meet our aim of being Net Zero Carbon by 2030, and to deliver, by 2025,
charitable, community and education work valued at £1m.

From land promotion, property development and investment to home building,
construction and plant hire, Henry Boot is where great places start.

henryboot.co.uk (http://www.henryboot.co.uk/)

About Royal London Asset Management Property

Royal London Asset Management Property is a key player in the UK commercial
property market, operating across six key sectors: offices, retail, industrial
and logistics, residential, healthcare and alternatives.

The team is part of Royal London Asset Management, one of the UK's leading
fund management companies, providing investment management solutions to both
wholesale and institutional clients such as not-for-profit organisations,
local authorities and the insurance sector.

 

Visit rlam.com (https://www.rlam.com/) to learn more

Enquiries

 

FTI Consulting

Richard Sunderland/Giles Barrie

07894 797067 / 07798 926814

henryboot@fticonsulting.com

 

Henry Boot PLC

Tim Roberts, Chief Executive Officer

Darren Littlewood, Chief Financial Officer

Daniel Boot, Senior Corporate Communications Manager

07825 088807

dboot@henryboot.co.uk

henryboot.co.uk

 

Deutsche Numis

Joint Corporate Broker

Ben Stoop

0207 260 1000

 

Peel Hunt LLP

Joint Corporate Broker

Ed Allsopp / Pete Mackie

0207 418 8900

 

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