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| Co-op sells farms business to Wellcome Trust | Co-op sells farms business to Wellcome Trust |
| (about 1 hour later) | |
| The Co-operative Group has sold its farms business to the Wellcome Trust, calming fears that swaths of British farmland would fall into foreign hands. | The Co-operative Group has sold its farms business to the Wellcome Trust, calming fears that swaths of British farmland would fall into foreign hands. |
| The charitable foundation bought the 16,000 hectares (40,000 acres) of land for £249m, which the Co-op said would be used to cut debt and invest in its remaining businesses. | The charitable foundation bought the 16,000 hectares (40,000 acres) of land for £249m, which the Co-op said would be used to cut debt and invest in its remaining businesses. |
| The Co-op, which reported losses of £2.5bn in the year to April 2014, said the sale reflects the new focus on its food, funeralcare, general insurance and legal services businesses. It comes shortly after the group offloaded its pharmacies business for £620m. | The Co-op, which reported losses of £2.5bn in the year to April 2014, said the sale reflects the new focus on its food, funeralcare, general insurance and legal services businesses. It comes shortly after the group offloaded its pharmacies business for £620m. |
| The Wellcome Trust has a large investment portfolio, including property worth £1.8bn, which helps fund its charitable work to drive improvements in human and animal health. | The Wellcome Trust has a large investment portfolio, including property worth £1.8bn, which helps fund its charitable work to drive improvements in human and animal health. |
| Critics of the sale fear it will end more than 100 years of ethical farming by the Co-op in its farms and at three packhouses across England and Scotland which process cereals, fruit, vegetables and honey. The Wellcome Trust said it would be a responsible landowner although it would not sign up to the Co-op's ethical guidelines. | Critics of the sale fear it will end more than 100 years of ethical farming by the Co-op in its farms and at three packhouses across England and Scotland which process cereals, fruit, vegetables and honey. The Wellcome Trust said it would be a responsible landowner although it would not sign up to the Co-op's ethical guidelines. |
| Peter Pereira Gray, managing director of investments at the Wellcome Trust, said: "The Co-operative has its own form of ethics; we wouldn't necessarily seek to be exactly replicating theirs. We have our own very high standards." | Peter Pereira Gray, managing director of investments at the Wellcome Trust, said: "The Co-operative has its own form of ethics; we wouldn't necessarily seek to be exactly replicating theirs. We have our own very high standards." |
| The Wellcome Trust said it intends to keep on the farms' 240 staff. The 16,000 hectares of land produce potatoes and fruit among other crops and the farms sell produce to Co-op food stores, among other customers, and will continue to do so following the sale. | The Wellcome Trust said it intends to keep on the farms' 240 staff. The 16,000 hectares of land produce potatoes and fruit among other crops and the farms sell produce to Co-op food stores, among other customers, and will continue to do so following the sale. |
| Interest in UK farmland remains high, due largely to fears over food security. Pereira Gray said: "Mark Twain's remark that 'they are not making any more land' is a good underpinning reason why farmland is attractive." He said the Co-op land is "on the whole" of very high quality. | Interest in UK farmland remains high, due largely to fears over food security. Pereira Gray said: "Mark Twain's remark that 'they are not making any more land' is a good underpinning reason why farmland is attractive." He said the Co-op land is "on the whole" of very high quality. |
| The Co-op insisted early on that it wanted a single major corporate buyer, arguing this would best preserve the jobs of those employed on the farms. That angered campaigners, which hoped the Co-op would consider community farm buyouts. | The Co-op insisted early on that it wanted a single major corporate buyer, arguing this would best preserve the jobs of those employed on the farms. That angered campaigners, which hoped the Co-op would consider community farm buyouts. |
| There will be some relief that the land has not fallen into foreign hands. In a similar vein to central London property, farmland is now seen as a safe bet by foreign investors. The value of prime British farmland has risen 273% to an average price of £21,500 per hectare over the past decade, according to Savills. | |
| The Wellcome Trust has owned agricultural land for many years but this deal represents a huge increase in its holdings. Pereira Gray said: "This is a different scale of acquisition for us." | The Wellcome Trust has owned agricultural land for many years but this deal represents a huge increase in its holdings. Pereira Gray said: "This is a different scale of acquisition for us." |