Consultancy – Bluefield Sandbach Limited
In 2006, private investors incorporated Bluefield Sandbach Limited (BSL) to acquire the 57-acre, former Albion Chemical, site from Hays Chemicals (now called Brenntag).
The key terms of the deal, including a comprehensive environmental deed for the clean-up, consisted of the following:
- Sale and leaseback for a term of 3 years
- Existing use value paid for the land
- Monies placed in an escrow account for remediation of the site
- Working capital
- Negotiation of an environmental deed which secured the environmental ‘liability transfer’ to BSL and a charge in favour of Brenntag was registered at land registry which required BSL to seek the consent and approval of Brenntag if land was sold prior to statutory sign off
- Joint appointment of an environmental consultant to oversee the remediation process and authorise the drawdown of Escrow monies
In addition to this, BSL secured a bespoke environmental insurance policy cover of £5m via Chubb in favour of Brenntag for a period of 10 years. This covered the following:
- Bodily injury
- Property damage
- Remediation costs resulting from a pollution incident
To date, under the guidance of BXB directors, BSL have successfully surrendered the following site-specific operational consents at Sandbach:
- Top tier COMAH Status
- Waste Management Licence
- IPPC Consent
- Hazardous substance consent
Planning permission was successfully secured for mixed-use planning permission for the whole site and, in July 2015, Taylor Wimpey completed the acquisition of 25 acres of land for residential development.
It is forecasted that this disposal will pay back the investors their initial investment and generate a profit in excess of the initial forecasts. BSL will retain circa 15 acres of development land, which is currently being promoted for residential development.