Flooring distributor rolls in over £53m from property sales

Birmingham-based flooring distributor Headlam Group has completed the sale of several properties for £53.9m as part of its ongoing transformation plan.

The first transaction involved the sale of properties in Ipswich, Gildersome and Leeds for £50.9m.

The Ipswich site is no longer needed following the company’s move to a new distribution centre in Rayleigh and will be vacated in early 2025.

A leaseback arrangement has been agreed upon for the Gildersome and Leeds properties.

The second sale saw a property in Uddingston sold for £3.1m, exceeding its last valuation of £2.3m.

All sales were above their book value, with a 64% premium compared to the original value of £32.9m and a 14% over the last market valuation of £47.1m.

The sales are part of Headlam’s strategy to optimize its operations, enhance customer service and improve efficiency.

The proceeds have been received in cash, placing the company in a net cash position, while still maintaining a property portfolio valued at £95m.

Chris Payne, chief executive officer, said: “These property transactions, on highly attractive terms, have been enabled by the progress we are making in optimising our operations, whilst also unlocking cash from our business, and further strengthening our balance sheet to re-invest in the Headlam proposition as the UK’s leading floorcoverings distributor.”