Following a review of its depot capacities and locations, Rotala has decided to dispose of its four acre depot in Long Acre, Birmingham, which was judged to be surplus to requirements.
This sale, to WPD Property Investments Limited, has now been completed at a price of £2.5m. The consideration approximates to the net book value of the property.
At the same time, Rotala has acquired a three acre site adjacent to its existing main depot in Oldbury, West Midlands, for a price of £380,000. This acquisition gives the group a combined 6.7 acre site for its bus operations in this part of the West Midlands.
Rotala expects to make a further investment of £600,000 over the next year in upgrading the capabilities of the enlarged site. It says the net proceeds of these transactions will be used to reduce borrowings.