Headlam, the UK-based floorcoverings distributor, has completed the sale and leaseback of its Tamworth distribution centre as part of its ongoing transformation plan. The transaction generated £21.75 million in proceeds, marking a 153% premium on the site's book value of £8.6 million and a 43% uplift on its most recent market valuation of £15.2 million.
© Headlam
Despite the sale, the Tamworth site remains central to Headlam's long-term operations. The company has signed a 10-year lease agreement, with options to extend, ensuring continued use of the facility within its core distribution network.
Headlam stated the leaseback cost aligns with its current debt cost, rendering the transaction "broadly neutral" to its underlying profit before tax. The move forms part of a broader strategy to optimise the balance between owned and leased assets.
Of the sale proceeds, £21.1 million has been received in cash, with £0.7 million withheld until agreed property repairs are completed. The funds will initially reduce the company's drawdown on its revolving credit facility, providing enhanced liquidity during the execution of its transformation strategy.
Source: www.bigfurnituregroup.com
