Victoria enters leaseback for manufacturing facility

19th Mar 2014 14:02

Victoria, the manufacturer and distributor of floor coverings, on Wednesday announced that it has entered into a sale and leaseback agreement with Monopro for its manufacturing facility in Kidderminster, for 5.8m pounds cash. The lease is for a 20-year term at an initial rent of £495,000 per year and is subject to annual RPI uplifts between 0% and 4%. The current net book value of the property is approximately £4.9m resulting in a profit on sale (after associated costs) of approximately £0.7m. Proceeds will be used to strengthen the company's balance sheet. WS