Sale of 9,400ha estate a once-in-a-century opportunity

Marketing has started for the biggest land sale in England and Wales for nearly a century. The 9,435-hectare Lake Vyrnwy Estate in Powys, central Wales, is being offered whole or in four lots by its vendor, utility Severn Trent Water.

Including 2,023 hectares of commercial forestry, 12 let farms and 31 let commercial and residential properties, the estate is being offered on a 125-year lease for GBP11 million (HK$131.95 million). It also includes 4,856 hectares of farmland which the estate farms organically with conservation charity, the Royal Society for the Protection of Birds.

'This is the largest estate to come to the market for nearly 100 years in England or Wales,' said Clive Hopkins, head of farm and estate sales at agents Knight Frank. 'It will appeal to a broad spectrum of the market from private buyers and investors through to funds, pension funds and corporate investors.'

The estate surrounds 450-hectare Lake Vyrnwy, which is owned by Severn Trent Water and supplies water to Liverpool. Amenity rights to the lake can be negotiated separately. Sporting rights are leased to a hotel.

Severn Trent was selling the estate to focus on its core activities of supplying water, chief executive Tony Wray said. The company will auction up to 50 smaller properties in autumn.

The Lake Vyrnwy Estate sale is unusual because it is offered leasehold when most country estates are freehold. The vendor wants to retain freehold to protect its water rights on the estate, the catchment area for Lake Vyrnwy. A freehold purchase is possible provided a buyer pays a higher sales price and signs covenants protecting Severn Trent's water rights.