Travis Perkins Completes GBP 31 Million Sale Leaseback of 35 Retail Properties in UK

Forbes/AFX - December 15, 2006

Travis Perkins PLC, the UK based construction products retailer, said it sold 35 freehold properties to an investment vehicle, in which the group retains a 15 pct stake, for 31 mln stg after costs. The properties, which have been leased back by the group on 25-year terms, on a near 6 pct yield, realised a net profit of 11 mln stg in 2006. Travis Perkins plans to re-invest the proceeds in new and existing properties.

"This is our biggest ever property deal and represents an important step in our implementation of the group's policy of maximising value through the development of its property portfolio," said chief executive Geoff Cooper. The group operates from over 1,000 sites of which 377 are freehold or long leasehold. It said that disposals in future years will likely be on a smaller scale. Sphere: Related Content