Henry Boot, the Sheffield-based property investment group, announced that its land promotion business Hallam Land Management (HLM) has unconditionally exchanged contracts for the sale of 494 residential plots in Chatteris, North Cambridgeshire, to the David Wilson Homes division of Barratt Developments.

“The sale will complete in July 2024, with the transaction resulting in an ungeared internal rate of return of 15% p.a.,” said Boot.

“HLM secured a Planning Promotion Agreement to promote the site on behalf of British Steel Pension Fund Trustee Ltd in 2005.

“HLM promoted the land through the planning process successfully securing outline planning consent for 1,000 residential plots in 2020 (including c.160 affordable homes). Henry Boot retain the remaining 506 plots for future sale.

“In addition to the provision of new homes, the complete Chatteris site will bring a number of additional benefits to the local area as part of the planning consent, including a primary school, a local community centre, green infrastructure, open space and playing fields, as well as seven acres of employment (office/general industrial/storage & distribution uses) and the renovation of a Grade II listed Tithe Barn for commercial or community use.”

Henry Boot CEO Tim Roberts said: “This sale demonstrates the continued demand we see for our premium sites, and is particularly encouraging given the challenging market backdrop, with lower transaction volumes.

“This disposal underscores our team’s experience in securing planning permission on complex sites and navigating them through an increasingly onerous planning system, enabling us to sell them to housebuilders and accelerate the delivery of much needed homes across the UK.”