Victoria (LSE:VCP) has completed the €34.4m sale and leaseback of its Belgian distribution centre to Avantage Property Holding BV.
The international flooring designer, manufacturer and distributor sold the site at more than six times its €5.6m net book value as at 31 January.
Existing tax losses will be used to offset the resulting capital gains tax bill.
The disposal supports Victoria's relocation of the majority of Balta Rugs' production to Turkey, a project the company expects to finalise during the third quarter of its 2027 financial year.
The distribution centre itself is not going anywhere: it will remain Balta Rugs' key European distribution hub despite the change in ownership.
Victoria said proceeds from this sale, together with two further surplus property disposals currently in progress, are expected to fully cover the exceptional costs and capital expenditure tied to the Turkish manufacturing transfer.
