Car dealership Caffyns has agreed to sell part of its freehold site in Eastbourne’s Upperton Road in a deal worth £1.55m.
The company said it has exchanged contracts with Churchill Retirement Living for the part-sale of the property at 5-7 Upperton Road, close to the junction with The Avenue and Terminus Road.
The proceeds will be used to reduce Caffyns’ borrowings and will be reinvested in the business.
The contract is conditional upon a High Court ruling relating to rights in respect of the part of the site being retained by the company.
According to business experts, Caffyns’ interest in the retained part of the site comprises the freehold reversion in 24 ground leases of a block of flats.
At the rear of the site, is Southfields Court, a 1960s five-storey residential block with 24 apartments over four floors above ground floor garages.
The court hearing is scheduled to be held on 15 June 2015 and the sum is payable in cash on completion ten working days following the date on which the contract becomes unconditional.
When the dealership closed in 2011 disused petrol tanks were removed from the site and it was marketed as a showroom, workshop and office accommodation.
Eastbourne Borough Council said at the time the site was a key development one and wanted to see mixed use there with retail, office and residential.
Churchill Retirement Living is a privately owned family run British company specialising exclusively in developing purpose-built one and two bedroom retirement apartments in the UK.
The company was founded in 1994 by Spencer and Clinton McCarthy. The company originally started out building stone and thatched cottages in and around Hampshire, Dorset and Wiltshire under the name of Emlor Homes.