A Black Country engineering group has completed a sale and leaseback deal on its premises. Listed Chamberlin has exchanged contracts on the freehold property in Chuckery Road, Walsall, with Heritage and Hill Investments.
The historic business, whose roots date back to the 1890s, specialises in producing castings and lighting products for use in fields such as automotive, construction, power generation and control gear.
The company announced in February that it was in discussions regarding a proposed sale and leaseback transaction at its Walsall property with a portion of proceeds being used to reduce its pension fund deficit.
The sale proceeds are £2.2 million in cash, with Chamberlin agreeing a ten-year lease for the property at an initial rent of £200,000 per year and a rent review after five years.
Half of the sale's proceeds will be put towards reducing Chamberlin's pension fund deficit with the remainder to be used for the group's growth strategies and as working capital.
Following completion of the deal, expected in mid June, the company will no longer hold any property assets.
