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(Sharecast News) - Plastic and paperboard packaging specialist Robinson has successfully completed the sale of a portion of its surplus property known as 'Mill Lane', located in Chesterfield, it announced on Wednesday.
The AIM-traded firm said the buyer was Peppermint Grove, with exchange and completion taking place on 30 May.
It said that while the majority of the property was vacant, a small portion was rented out to third parties, generating annual rental income of £12,000.
The consideration for the sale totalled £0.7m in cash.
Robinson said it was planning to use the proceeds from the sale to reduce its existing bank debt, thus strengthening its financial position.
As at 31 December, the book value of the Mill Lane property was £0.64m, implying a decent profit from the sale.
Following completion, the company's directors estimated that the remaining surplus properties held by Robinson had a combined market value of £7.4m.
"Subject to the necessary planning approvals, we would expect further sales of surplus property in Chesterfield to be achieved in the next 12 months," the Robinson board said in its statement.
"The intention of the group remains, over time, to realise value from the disposal of surplus properties and to reinvest the proceeds in developing our packaging business."
At 0950 BST, shares in Robinson were up 6.42% at 99.5p.
Reporting by Josh White for Sharecast.com.
