Friday 31st of May 2013

Alcan Portfolio Hits the Market

This Spring has seen the launch of one of the largest land sales seen in the North East for many years. Offers in the region of £20 million are being sought by YoungsRPS for the Northumberland-based Alcan Farms Property Portfolio.

Included in the sale are four fully equipped farms, 19 residential properties, a number of potential development opportunities requiring planning consent, an operational wind farm and strategic mineral assets. The total landholding is 1,785.34 ha (4,411.57 acres).

The farms are currently managed in-hand by Alcan Farms. The majority of the land, some 1,201.86 ha (2,969.80 acres) is being offered with vacant possession alongside a further 583.48 ha (1,441.77 acres) which is currently tenanted by Alcan Farms. Unusually, the tenanted land is farmed under assignable tenancy agreements. As a result, assignments of the tenancies are being offered along with the freehold sale.

The land has been managed as part of the Alcan Farms business since 1973. The existing management regime focuses primarily on the cereal rotation but this is run alongside a mixed livestock enterprise of a 340 head suckler herd and a commercial flock of 525 ewes. However it would be possible to expand the arable acreage should a purchaser wish to do so.

For the property investor the sale offers a variety of opportunities in addition to that provided by the farming enterprise. This includes several potential development sites on the edge of existing conurbations, strategic mineral assets, a substantial residential portfolio, and an operational wind farm with 13 turbines.

Comments Graeme Bruce, partner at YoungsRPS and head of the Alnwick office; “This portfolio offers many options. It is unusual on a number of levels and as such we are anticipating interest from a diverse range of potential buyers and investors.”

“Firstly it provides a rare chance to purchase a large block of productive and well managed farmland in one location, and as such will undoubtedly appeal to those with commercial farming interests nationwide and possibly even from overseas. Secondly, the location of the land offers a variety of development opportunities as well as income earning potential from the operational wind farm and residential property portfolio. With this in mind we are offering the portfolio in a total of five lots to cater for the varied interests although it would be the vendor’s preference to sell the whole portfolio as a going concern. This sale is certainly unique and as such has the potential to set down a number of markers for the property market nationwide at this early stage of the year.”

Jim Beattie, Alcan Farms manager, added: “We’ve farmed this land on a commercial basis for a number of years and we believe it has great potential for further development. All expressions of interest will be very carefully considered to ensure this major land holding transfers to the ownership of a responsible purchaser with long-term plans that will benefit the communities of Northumberland.”