Carpet maker Victoria agrees £5.8m sale and leaseback deal on factory
WORCESTERSHIRE-based carpet manufacturer Victoria has announced a £5.8m sale and leaseback agreement on its Kidderminster factory.
In a statement to the London Stock Exchange, Victoria said it had agreed a cash deal with Monopro Ltd in respect of the Worcester Road manufacturing facility.
The lease is for a 20-year term at an initial rent of £495,000 per annum and 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.
The company, which has undergone considerable upheaval in recent times, said the proceeds from the deal would be used to strengthen the firm’s balance sheet.
