Unipart Group has sold two of its major plants, including its Oxford headquarters, in a bid to raise cash.

Under the terms of the sale, the motor components and supply chain management company is leasing back both the Cowley operation and its factory in Baginton, Coventry, from an unnamed property company.

Spokesman Frank Nigriello said: "It's a good deal. The property company gains an income-producing asset and Unipart gains an injection of cash."

He said Unipart has a 20-year lease on the two sites.

The deal on the 72-acre Cowley site was worth £52.7m, and £21.75m on the 35-acre Baginton site.

Unipart has announced sales of £2.2bn and pre-tax profits of £25.6m.

Mr Nigriello added that the period was one of profound change for Unipart.

In February 2002, the group's historic contract to supply parts to Rover and Land Rover ended.

The leaseback arrangement is designed to take advantage of low interest rates and to reduce group borrowing from £146m to £87m.

Unipart chief executive John Neill warned that trading conditions were becoming more difficult.

He said conditions were expected to have a significant effect on sales into 2003 -- although he said sales were continuing to grow.

Mr Neill said: "As is the case in many automotive-related companies, Unipart is witnessing significant pressure in that sector.

"However, our strategic diversification into logistics services for sectors -- such as rail, IT and leisure -- has worked well.

"It is expected to deliver robust sales and profits in the years ahead.

"Although year-on-year sales have been good, sales for the second half of 2002 have slowed.

"The automotive market has shown signs of further softening, with some manufacturers now reducing schedules."

Unipart shareholders are now waiting to see how the company's results will affect the value of their holdings.

Unipart is a private company, but about 2,000 of the company's 9,000 employees own shares in the firm. Employee share-ownership stands at about 50 per cent.

Company shares are valued each year in December by independent auditors.

In January 2001, the shares fell to 36p each from 42p in 2000, and 108p in 1999.