Online bathroom retailer Victorian Plumbing has signed a 20-year lease agreement for a 544,000 sq ft, purpose-built distribution centre in Lancashire, close to its existing operations.
The site, at Farington Park in Leyland, was speculatively developed and backed with a funding deal between Goldman Sachs Asset Management, Canmoor and Caddick Group. That deal completed in September last year.
The Skelmersdale-headquartered retailer said the distribution centre will allow it to consolidate a number of its existing sites, adding that it will invest in fitting out the facility through the current and next financial year.
A circa £50m right-of-use asset, together with a corresponding lease liability of the same value, will be recognised on the company’s balance sheet following completion of the fit out.
Victorian Plumbing said cash outflows associated with the lease will be “broadly neutral” when compared with existing property costs, after an initial period of investment and operational transition.
The distribution centre is set to be completed in Autumn 2023. It will become fully operational after a period of dual running with existing sites to ensure a smooth transition.
Victorian Plumbing founder and chief executive Mark Radcliffe said the new facility would provide the company “with capacity to manage growth in the long-term”.
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