Eastbourne-based dealer group Caffyns has exchanged contracts with Ability Contractors for the sale of its vacant freehold site at East Grinstead for £1m in cash.

The gain on sale will be approximately £160,000 and the proceeds will be applied in reducing the company's borrowings.

Earlier this month Caffyns said it was going to close three businesses - a bodyshop in Hailsham, a Nissan/Chevrolet dealership in Eastbourne and a bodyshop in Tunbridge Wells – to help reduce costs and enhance efficiency.

The dealer group had already sold a Citroen dealership in Uckfield and closed a small Ford business in Haslemere.

The disposals aim to have a positive cash impact and should enhance trading profit next year. Cash realised from sales of properties will be invested in modern dealerships on larger and more profitable sites.