Commercial group properties Plc, the AIM-listed property development company, announces that it has agreed non-binding Heads of Terms to purchase Westwood Industrial Park, comprising 55 acres of development land ("the Development Land") from Wigan Metropolitan Borough Council as outlined in our previous statement of 29 May 2007. The Development Land is an unoccupied brownfield site situated in Wigan and there is currently no income derived from this site.
It is intended that the Development Land will be purchased through a new joint venture partnership "Chinamex Gateway @ Wigan Ltd" with Chinamex, the official trading platform of the People's Republic of China. The joint venture partnership is 80% owned by CGP.
The Company is proposing to submit a planning application to Wigan Metropolitan Borough Council to develop between 900,000 to 1 million square feet of manufacturing and Research & Development facilities that the Directors believe could deliver up to 1,000 new jobs in the textile and apparel manufacturing sector.
In developing this site, the Company is working closely with its partner Chinamex and the CCCT, the China Chamber of Commerce for import and export of Textiles, which represents 70% of all Chinese textile manufacturers with over 6300 member companies.
If and when a binding contract is signed, the Company will make a further announcement in accordance with Rule 12 of the AIM Rules for Companies, including full details of the transaction.
The agreement of the Heads of Terms is a major milestone in the development of the relationship between Wigan Metropolitan Borough Council and both CGP and Chinamex. The development of this site will reestablish Wigan as a major centre of excellence for the manufacturing of textiles and apparel and as a foundation for further development.
Ends |
