Bathroom retailer Norcros has agreed to sell its entire surplus legacy freehold portfolio to Clowes Developments for £6.5m in cash.
Contracts have been exchanged with the deal completing on 2 March 2015.
The portfolio comprises three surplus sites in Tunstall, Staffordshire, one on Orgreave Drive, Sheffield, and two in Boston, Lincolnshire.
Following this transaction, Norcros will have no remaining surplus freehold property. It has one legacy surplus lease at Groundwell in Swindon, running to 2022 and sub-let to Network Rail to 2018 at a net cost of £200,000 annually to Norcros.
The proceeds from the deal will be used to pay down debt, providing funds for the continued expansion of the group.
Group chief executive Nick Kelsall said: “I am delighted with this transaction as it is a significant step forward for the group, an elegant solution to our surplus legacy freeholds and a very positive outcome for shareholders and management. It ends a long chapter in the group’s property history in one transaction and realises significant cash.”
