The Wellcome Trust has completed one of the world’s biggest agricultural investment deals with the £249m purchase of the Co-operative Group’s farms.
The charity has bought the operating company and its 39,553 acres of freehold and third party-owned land, comprising 15 farms, three packhouses, 100 homes and 27 commercial buildings.
The deal is thought to be the largest farm deal completed in the UK.
The sale comes as the Co-operative continues its strategic shift to focus on its core retail and consumer services divisions, including food, funerals, insurance and legal services.
The proceeds of the sale will be used to reduce the group’s debt.
Wellcome Trust is funded by a £16.5bn endowment, which has grown by more than 153% in the past decade.
It now owns property valued at more than £1.8bn as of September 2013.
Richard Pennycook, the Co-op’s interim group chief executive, said: “The successful sale of our farms business is another important development for the Co-operative Group. The sale proceeds will enable us to further reduce our debt and progress with the delivery of the clear strategic plans we have in place for our core retail and consumer services divisions.
Danny Truell, chief investment officer at the Wellcome Trust, added: “The Wellcome Trust has a strong track record as a long-term investor which values responsible stewardship over quick profits, with extensive and successful interests in UK property and farmland. We believe that we are ideally placed to develop and grow the Co-operative Group’s farms and farm business while providing continuity, and are delighted to have acquired them in what will be one of the largest global deals of its kind.
Bidwells advised the Wellcome Trust; Savils advised the Co-operative.
jack.sidders@estatesgazette.com
