UK-based producer of technical leather for gloves, shoes, luxury leathergoods and sports equipment Pittards Plc has exchanged contracts for the sale and leaseback of its principal operating site in Yeovil, UK.

The company has sold the site for £3.1 million, payable in cash, and has agreed to enter into a lease for a 10-year term at an initial annual rent of £254,000 per annum, following a rent-free period of six months.

The sale of the property realised a profit over net book value of £0.49million before transaction costs, the proceeds of which will be applied to repay the loan plus accrued interest due to the company’s trustees’ pension schemes.