Planning Permission Granted for Blindwells Site

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 £5.0m, 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 £129.2m 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 £35-50m 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

 

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