19 January 1996

Estates offer accepted at £7.25m plus

AN aggregate offer for the Gunthorpe and Risby Estates by Albanwise, the Norfolk-based farming company, has been accepted recently.

Together, the guide price for the estates totalling 5642 acres in Norfolk and Humberside was around £7.25m which the sale price exceeded.

"More than the basic tenanted value of about £1050/acre was achieved on both estates," says Nigel Wild of selling agents Brown & Co. "The average price per acre was nearer £1200."

Generating an approximate annual rent roll of £269,669, the sale reflects a yield in the region of 4% indicating possible room for rental growth.

Albanwise through their agents Bidwells initially put in an offer for both estates two weeks after Risby was marketed. At this stage Gunthorpe had yet to come to the market, however further negotiation was needed prior to an offer being accepted by vendors, Sun Alliance.

Mr Wild says although offers for each estate were received, mainly from local landowners, Albanwise provided the main interest throughout sale proceedings.

At Risby the majority of tenants were interested in buying their own farms but no offer for the whole was made.

A third party was brought in to try and arrange a deal on their behalf which guaranteed that finance for any farms where the tenant was not interested in buying would be available.

The purchase increases Albanwises agricultural portfolio to 17,000 acres. It already owns 4275 acres in Yorkshire and 6145 acres in Norfolk, with 60% farmed and 40% tenanted.

&#8226 Also what is described by selling agents Brown & Co as a traditional landlord has recently bought the 1000-acre Stanford Rivers Estate, near Chipping Ongar, Essex. The yield of in the region of 5% reflected the relatively full annual rental of £75/acre – the commercial unit was guided at £1.3m.

The Gunthorpe and Risby Estates bought recently by the farming company Albanwise for in excess of £7.25m after more than 20 years of ownership by Sun Alliance.