FirstGroup to sell all but two of remaining Greyhouse properties for $140m

Transport operator FirstGroup said on Tuesday that it has agreed the sale of all but two of its remaining Greyhouse US properties to Twenty Lake Management, an affiliate of Twenty Lake Holdings, for around $140m.

FirstGroup, which is carrying out the sale through subsidiary FirstGroup Services, is expected to receive the proceeds in December. The company also said it completed the sale of a site in Denver for net $9m in August, with some of the proceeds being applied in further de-risking of the residual Greyhound pensions liabilities.

In aggregate, the book value of the Greyhound properties sold since the year end was around $60m as at 26 March, the company said. As a result, a profit on sale of circa $90m is expected to be booked in the current financial year.

Chief executive Graham Sutherland said: "The sale of these residual Greyhound properties is another milestone in refocusing FirstGroup on our strong positions in bus and rail in the UK.

“We look forward to building on our robust platform for growth and shareholder value creation in future."