Severn Trent Water has completed one of the largest farmland leasing deals struck in the UK.
The water company has agreed to rent the RSPB almost 12,000 acres of land at the Lake Vyrnwy Estate in Wales.
The land is to be rented for 30 years, an unusually long term in the rural market, where deals are typically five to 10 years.
The rent will be determined on a profit-sharing basis from the activities of the RSPB on the land, such as farming. The deal will allow the RSPB to pursue conservation work.
In total the estate is 23,500 acres and includes the lake that supplies Liverpool’s water.
A management agreement for the estate has also been agreed with government sustainability body Natural Resources Wales.
The estate is an important site of special scientific interest and Knight Frank, which acted for Severn Trent on the deal, will work alongside Natural Resources Wales with responsibility for the SSSI and as managers of the neighbouring Lake Vyrnwy Forestry Estate.
Edward Dixon, partner in Knight Frank’s rural consultancy, said: “This deal demonstrates that there are organisations willing to commit capital on a large scale to run a profitable upland farm business.
“Investors continue to be interested in rural land across the UK.”
