The 15-acre site is alongside Michelmersh’s current brickworks but, despite rising demand for bricks, it is surplus to requirements.
Bovis is paying £4.6m in cash for the site, with £1.6m on completion followed by two staged payments of £1.5m over the next two years. Michelmersh said it would use any remaining money after site reorganisation to reduce its bank debts.
Michelmersh CEO Martin Warner said: "Completion of the sale of this land is extremely satisfying and is a sound reward for the hard work of our planning and development team. We now move on to address other land assets and maximise their value to the Group.
"We are, however, principally a brick manufacturer and we continue to compete strongly in a market that is showing signs of price recovery. The upturn in demand we have seen over the past few months is encouraging us to invest in our existing plants to increase capacity and efficiency, which will, in due course, increase Group revenue."