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(Alliance News) - Crest Nicholson Holdings PLC on Friday said it has agreed to sell its 50% interest in Longcross Studio and a parcel of associated land on the southern side of the site.
It will be disposed to Longcross General Partner Ltd, an Aviva Investors company. Aviva PLC is Crest Nicholson's existing joint venture partner for this scheme.
The FTSE 250-listed residential housebuilder said the transaction is expected to complete late summer subject to satisfying contractual conditions.
Crest Nicholson did not disclose financial details of the deal but said it expects its proceeds from this transaction to deliver a one-off contribution in excess of GBP10 million to adjusted pretax profit and the receipt of GBP45 million cash consideration by the end of the financial year on October 31.
Upon completion of this sale, the company said it will continue to hold a 50% interest in the remaining 195 acres of Longcross Garden Village in a joint venture with Aviva.
This site, located in Surrey, is expected to deliver up to 1,700 homes. It is intended that Crest Nicholson will develop and complete its share of this site in the future.
Crest Nicholson shares were trading 1.4% higher in London early on Friday at 427.00 pence each.
Elsewhere, the Surrey, England-based company said progress was made in strengthening the its balance sheet last year. In addition, it has developed plans to grow the business over the medium term and the GBP45 million cash inflow arising from this transaction will allow it to accelerate its existing strategy and support these future growth intentions.
Crest Nicholson will report results for the six months to the end of April on June 24.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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