Hargreaves Services PLC Planning Permission Granted for Blindwells Site (9279A)
30 March 2017 - 1:30AM
UK Regulatory
TIDMHSP
RNS Number : 9279A
Hargreaves Services PLC
29 March 2017
For immediate release 29 March 2017
Hargreaves Services plc
("Hargreaves" or "the Group")
Planning Permission Granted for Blindwells Site
Hargreaves Services plc (AIM: HSP), a diversified group
delivering key projects and services to the infrastructure, energy
and property sectors, is pleased to announce that it has today
received planning approval in principle for 1,600 new homes at
Blindwells, on part of a 392 acre site near Tranent in East
Lothian, which is situated less than 15 miles from Edinburgh city
centre. The approval, which includes affordable housing and mixed
use development, represents the first phase of a wider master plan
for more than 3,200 homes to be developed over the next 12-15
years.
The Blindwells site, which was formerly an open cast coal mine
until its closure in 2000, will require some initial consolidation
work and the development of infrastructure such as roads and
connections to utility networks. This work is expected to commence
shortly and will require upfront capital investment by Hargreaves
in groundworks and enabling infrastructure at a cost of
approximately GBP5.0m, which is expected to be funded from the
Group's existing resources. Subsequently, it is expected that
Hargreaves will undertake the phased sale of residential
development plots to national and local house builders over a
number of years.
The grant of planning is expected to generate a meaningful
uplift to the market value of the Blindwells site relative to the
book value included in the Group's Net Assets which totalled
GBP129.2m at the 30 November 2016. As previously announced, the
Group has commissioned a formal independent valuation of our
property portfolio for publication in our Preliminary Results in
August 2017, by which time we expect our assessment of the
development options for the site will be more complete.
The valuation report will include an assessment of the value of
the Blindwells site reflecting today's grant of planning
permission. Going forward this valuation will be revised and
reported on annually to enable shareholders to track progress.
Commenting on the planning approval, Iain Slater, Development
and Estates Director for Hargreaves, said: 'We have worked in
partnership with East Lothian Council to deliver its original
vision for a new community and we are confident that Blindwells
will provide a high quality lifestyle set around some of Scotland's
finest countryside. We're delighted that the first phase has been
granted planning approval in principle and we look forward to
working with the Council to ensure delivery of the targeted
development investment and associated benefits for East
Lothian."
Gordon Banham, Chief Executive Officer of Hargreaves, said: "We
are delighted to have secured this planning permission. It marks
another important milestone in achieving the target we set
ourselves to deliver GBP35-50m of new value from our overall
property portfolio over the next five years. Blindwells is an
important part of that portfolio and is an excellent and exciting
site. The grant of planning permission now allows us to develop and
commercialise the site and we look forward to providing further
updates and information as our plans progress."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further details:
Hargreaves Services
Gordon Banham, Chief Executive
Officer
Iain Cockburn, Finance
Director 0191 373 4485
Buchanan
Mark Court / Sophie Cowles 020 7466 5000
N+1 Singer (Nomad and
Joint Broker)
Sandy Fraser / Nick Owen 020 7496 3000
Investec (Joint Broker)
Sara Hale / Robert Baker 020 7597 4000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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