GreenBank Capital Inc (CSE:GBC) has revealed that its 19%-owned portfolio company Staminier Limited has further enhanced its bid to purchase 13 acres of land near London’s Gatwick Airport by increasing the option period to the end of February 2023.
Greenbank noted that Staminier has applied to have the plot reallocated as "strategic employment land" as part of its strategy to significantly increase the land value. If the land is reallocated, it said comparable land sales indicate that the value of the optioned land would be in the region of £19.5 million (C$34 million), with potential to be significantly higher if and when formal planning/zoning consent is obtained.
Staminier acquired the three-year option to purchase the land for £6 million on August 27, 2019. It paid £120,000 (C$207,000) for the latest extension.
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Greenbank said Staminier is hopeful that a decision on the reallocation will be taken in the next few months. Given the surrounding land which envelopes the 13 acres has already received the strategic employment land allocation under a proposed local government plan, it said Staminier management feels it is reasonable to expect that the 13 acres would be treated similarly.
It said Staminier management may use the land as a distribution centre for a major online retailer or shipment company to help meet burgeoning demand for warehousing and storage space, creating significant employment in the area. Currently there is a major scarcity of land in the UK to meet this very high demand, Greenbank added.
"The recent sales activity supports the potential value of our 13-acre site,” Staminier director Steve O’Carroll said in a statement. “The need for distribution and Strategic Employment Land centres to support the burgeoning growth of online shopping has never been greater and we feel that the location of the land at London Gatwick Airport is ideal for this purpose.”
Terry Pullen, CEO of GreenBank, said: "Staminier's decision to pay £120,000 to extend its option period reflects confidence that this parcel of land is well positioned for reallocation as Strategic Employment Land, and with potential for very good returns in future.”
GreenBank Capital is a next-generation merchant banking business that has a flexible low-cost overhead structure designed to maximize profitability.
Its management are based in Toronto, Dallas and London and are used to working across borders remotely. The company's model of remote working, dynamic space and flexible contracts - rather than large fixed costs - establishes GreenBank as a global merchant bank for the future, both during and after the coronavirus (COVID19) pandemic.
Contact the author at stephen.gunnion@proactiveinvestors.com