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| UK Businesses For SaleBarratt considers sale of commercial property arm
11/04/2008
One of the UK’s largest housebuilders, Barratt Developments, is mulling a £250m sale of its commercial property division, Wilson Bowden Developments. The sale would reduce the debt generated as a result of the £2.2bn acquisition of rival, Wilson Bowden, last year.
The business have appointed Jones Lang LaSalle Corporate Finance to assist with the sale of the division, which is expected to be put on the market in the next month or so. Wilson Bowden Developments, which specialises in town centre regeneration as well as office and industrial development in the UK, is not seen as a core concern for Barratt. This is due to commercial property going through a difficult time with falling capital values and uncertainty over occupancy levels. The division may be more likely to be sold to a trade buyer rather than to a private equity investor or the current management, due to the current instability of the market which renders the timing of the sale more difficult. Barratt has a market value of £1.3 billion which is well below its debt burden as its stock has tumbled by more than two-thirds since February 2007. In the six months to December 2007, Wilson Bowden Developments made operating profits of £4.3 million on sales of £42.5 million. |
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