Headlam Group (LSE:HEAD), the UK's leading floorcoverings distributor, completed the sale of its Nottingham and Rochester properties to Carter Investment One for £7.55 million plus VAT.
The company said it has de-recognised the Nottingham property book value of £1.95 million and the Rochester book value of £1.33 million and recognised receipt of £7.55 million excluding VAT, plus £1.51 million of VAT cash to be paid to HM Revenue & Customs in the next quarterly VAT payment.
Headlam entered a short leaseback for the Rochester site with the buyer until 19 June 2027 at a market rent, the lease being contracted outside the Landlord and Tenant Act 1954.
The disposals, together with a sale announced earlier in the week, produce c.£15.3 million net of proceeds which the group will use for general working capital to strengthen the balance sheet.
Headlam said it continues to evaluate a potential sale and leaseback of its Coleshill property and will update the market in due course.
