Chamberlin has exchanged contracts on a sale and leaseback of its freehold property held by Russell Ductile Castings in Scunthorpe with Prospect Estates.
The sale proceeds are £1.25mln in cash and Chamberlin has a 10-year lease for the property at an initial rent of £125,000 per annum for the first 5 years, increasing to £150,000 per annum for years 6 to 10.
Chamberlin will use the proceeds to reduce its pension fund deficit by £600,000 in satisfaction of the Chamberlin & Hill Life Assurance Scheme's charge over the property.
Following completion, the group said it will hold property assets with a net book value of approximately £800k.