Warehouse sale and leaseback boosts finances at Topps Tiles
UK’s largest tile specialist Topps Tiles has agreed the sale and leaseback of its head office and central warehouse buildings at Grove Park, Enderby, Leicester, to UK Warehouse Properties.
The sale for £18.1 million, which is expected to take place in early June 2020 represents a premium of approximately 29.3% to the balance sheet asset value of the Properties of £14 million.
Topps Tiles has taken a 20-year lease for the Properties at an annual rent of £1.2 million..
The proceeds from the Sale will further strengthen the Group’s financial position as it responds to the COVID-19 crisis.
Based on the group’s net debt position at 29 May 2020, at completion of the sale, the group would have net debt of about £7m with about £42m of available liquidity – including the credit approved CLBILS £10m loan facility which the company announced on 19 May and is due to be finalised shortly.