Travis Perkins sells £31m of freehold
Leading UK building merchant, Travis Perkins, has sold 35 of its freehold properties in a £31 million deal that ranks as the firm’s biggest ever property transaction.The properties, which have been leased back by the group on 25 year terms, on a near six per cent yield, were sold to an investment vehicle in which Travis retains a 15 per cent stake and realised a net profit of £11m in 2006.
The deal is in line with Travis’ strategy of releasing value from its property portfolio and the company now plans to re-invest the proceeds into new and existing properties as it continues to expand across its six brands.
The Travis Perkins group currently operates from over 1,000 sites of which 377 are freehold or long leasehold. As well as being one of the group’s considerable operating strengths the freehold portfolio gives Travis the potential to seek further opportunities to enhance value.
The company said it was likely that disposals in future years would be on a smaller scale with the emphasis on driving profits from relocations, part disposals and site redevelopments.