Newbury Racecourse has signed an agreement with housebuilders David Wilson Homes and Barratt Developments for a contentious residential development on 50 acres of surplus land.
The contract is subject to planning permission for the development around the
In a stock market announcement today, Newbury said David Wilson had paid £1.5m for costs incurred to date.
Sir David Sieff, chairman of Newbury Racecourse and former Marks and Spencer executive, said: “This is an important step in maximising value for all shareholders and securing the long-term future of the racecourse.”
The racecourse has been subject to takeover speculation from Guinness Peat subsidiary GPG, which has built a stake of 26.2%, and failed in a hostile takeover bid in February after shareholders failed to back its £34.6m offer.
GPG and smaller shareholder Allied Mutual Insurance Services wrote a letter to Newbury in February calling for directors to cancel plans for the £45m housing development.
