(Sharecast News) - Industrial and property service provider Hargreaves Services announced on Monday that Waystone Hargreaves Land - the 50-50 joint venture developing the 650 acre mixed-use 'Unity1' project - has exchanged conditional contracts with Aver Property for the development and sale of two large distribution units on plots of 19 acres and 10 acres.
The AIM-traded firm said that on legal completion, the two contracts would generate combined revenue of more than £50m for the joint venture.
Net cash proceeds from the contract, after allowing for the costs of the development, would be distributed following project completion subject to the funding requirements of the joint venture at the time.
The company said the two distribution units would comprise 191,000 and 375,000 square feet, respectively, and would both be located on 'Unity Connect', the dedicated employment area of the development immediately adjacent to junction 5 of the M18 motorway.
Hargreaves said the area already had outline planning permission for industrial and logistics space, and formed part of a wider planning permission for two million square feet of commercial space and 3,100 homes across the Unity development site.
Both transactions remained conditional on the grant of detailed planning permission, and were expected to become unconditional before the end of 2022 and be completed within 12 months of the start of construction.
The firm noted that the large industrial and distribution scheme followed the April 2021 completion of the sale of a 79 acre development site for a regional logistics hub to an unnamed "national retailer", with the board saying it represented a "further acceleration" of the Unity project.
Hargreaves also announced the exchange of another conditional contract at Blindwells on Monday, for the sale of 4.6 acres to regional housebuilder Ogilvie Homes.
The company said the latest exchange followed the recently-completed sale to Persimmon, and would deliver 77 homes, including 23 classed as "affordable", generating a minimum revenue of £3.5m.
"The board is delighted to see further progress being made at Unity by the Hargreaves Land team and our Waystone partners," said non-executive chairman Roger McDowell.
"This is another positive step towards realising the inherent value of the group's substantial land portfolio."
At 1246 GMT, shares in Hargreaves Services were up 6.85% at 530p.
Hargreaves Serv (HSP)