Kingfisher, the UK-based home improvement and DIY retail group, has agreed to sell its freehold property interest in B&Q's new 81,000 square metre (875,000 sq.ft) national distribution centre in Worksop, Nottinghamshire, to a private buyer for a total cash payment of £73 mln (EUR 108.2 mln).
Kingfisher, the UK-based home improvement and DIY retail group, has agreed to sell its freehold property interest in B&Q's new 81,000 square metre (875,000 sq.ft) national distribution centre in Worksop, Nottinghamshire, to a private buyer for a total cash payment of £73 mln (EUR 108.2 mln).
The Worksop site, which was developed by B&Q, will be leased back at an open market rent payable monthly in advance and subject to five yearly index-linked reviews, with a cap. The lease allows B&Q significant operational flexibility.
The disposal gives rise to a pre-tax exceptional gain of around £40 mln. Kingfisher will use the proceeds to repay existing debt and invest in its worldwide store opening programme. Duncan Tatton-Brown, group finance director, said: 'This is consistent with our policy of recycling property when economically attractive, with the aim of creating value for shareholders.'
