Heineken announced today (7 August) that it has signed an agreement to sell its existing brewery site in Spain to a group of local developers.

The Dutch brewing giant is building a new brewery just outside Seville and will leave its current site in the Spanish city in March 2008.

Heineken said it had struck a deal to sell the land and buildings to Spanish developers Viviendas Ciudad de Sevilla.

When the deal goes through, Heineken will book an after-tax gain of EUR279m (US$358.8m) during the second half of this year.