Farmland includes potential coal income

Almost 1,215ha (3,000 acres) of land containing an estimated 6.8m tonnes of coal is for sale across eight sites in the north of England.

The sale of the surface land, which includes farms, houses and buildings generating a current annual income of more than £240,000, is subject to vendor UK Coal retaining the right to extract coal.

The land is being offered as a whole and all sites are within the company’s five-year planning programme for surface mining, said Gerald Fitzgerald, head of investment and valuations at joint agent Smiths Gore.

The successful purchaser will get market royalty payments typically worth about £2/t. “This is a unique opportunity for investors to work in partnership with UK Coal to drive performance of these sites,” he said.

Interest is expected both from traditional estates and private individuals looking for an agricultural investment that can provide extra income.

“Unlike some other high-yielding assets, this investment will appeal because of the inheritance tax reliefs available on certain parts of the land,” Mr Fitzgerald said. The land is being sold to reduce debt. (Smiths Gore 0207 409 9492; Fisher German 01530 412821)