Co-operative Group sells off farming arm to Wellcome Trust for £249m
The Co-operative Group continued offloading its non-core assets yesterday with the sale of nearly 16,000 hectares of British farmland, 15 farms and over 100 residential properties to health charity the Wellcome Trust for £249m.
The sale comes just three weeks after The Co-op sold its 774-chain pharmacy business for £620m, as the group looks to focus further on its core food, funeralcare, general insurance and legal services businesses, in the wake of ongoing financial losses.
“The successful sale of our farms business is another important development for The Co-operative Group,” said The Co-op’s interim chief executive Richard Pennycook.
The UK’s biggest mutually owned company has reacted to its biggest-ever loss, amounting to £2.5bn for 2013, by making cost-cutting a priority with the sale of its farming and pharmacy businesses reflecting that.
“The sale proceeds will enable us to further reduce our debt and progress with the delivery of the clear strategic plans we have in place for our core retail and consumer services’ divisions,” added Pennycook.
The deal includes a number of assets such as 15,997 hectares of freehold and third party owned land, 15 farms, including 3 pack houses, over 100 residential properties and 27 commercial properties across Britain.
“The Wellcome Trust has a strong track record as a long-term investor which values responsible stewardship over quick profits, with extensive and successful interests in UK property and farmland,” said the Wellcome Trust’s chief investment officer Danny Truell.
“We believe that we are ideally placed to develop and grow The Co-operative Group’s farms and farm business while providing continuity, and are delighted to have acquired them in what will be one of the largest global deals of its kind.”