Lords has completed the sale and leaseback of the Heathrow branch from which its George Lines Civils & Landscaping Merchants has been operating from for more than 40 years.
The site, which covers an area of 1.52 acres, including 5,570ft2 of covered storage, is being sold to Outback UK Propco 2 A Limited, for £7.1 million, and will be leased back to George Lines on a fifteen-year lease on market terms.
Purchased from the vendor of George Lines for £6.3 million to ensure Lords retained control of the site, the group has to date paid £3.2 million in cash with the balance of the remaining consideration payable of £3.1 million to be settled on completion of the sale and leaseback of the property.
The net proceeds of the sale of £3.9 million will be applied towards reducing group borrowings, and in doing so providing additional liquidity for future organic and acquisitive growth opportunities.
Commenting on the transaction, Shanker Patel, Chief Executive Officer of Lords, said: "We are pleased to agree this transaction to support future trading from the highly sought-after Heathrow site, that has exceptional logistic and trading benefits for the George Lines merchanting brand and we look forward to continuing to grow organically through new branch openings.
"The financial benefits of the transaction are also supportive of our strategy to scale the business and, as outlined at the recent interim results, the Group's focus on operational efficiency and working capital management have ensured that we are well positioned for a market recovery.”
