Schroder REIT has exchanged contracts to sell a former industrial site in Hinckley, Leicestershire, with consent for 122 homes to Redrow.
Redrow has agreed to pay £4.5m for the site, which was independently valued at £3.9m as at 30 June.
The property comprises a 9.1-acre former industrial site close to Hinckley town centre and is currently vacant.
In August 2013, Schroder secured an outline planning consent for 122 homes.
Under the terms of the transaction, Redrow is obliged to make a detailed residential planning application within three months of exchange of contracts at its own cost.
Subject to Redrow securing detailed planning consent and satisfying other ancillary conditions, Schroder will receive 50% of the purchase price at completion and the balance nine months later.
Schroder also has the potential to receive additional cash under an overage agreement linked to the residential sales values achieved by Redrow.
nick.whitten@estatesgazette.com
