(Alliance News) - Connect Group PLC said Thursday its subsidiary Tuffnells Parcels Express Ltd has agreed to sell two Tuffnells distribution depots to separate purchasers for GBP5.2 million in cash.
The depots in Belvedere will be sold to Campus Overseas Corp for GBP4.8 million, and the Carnforth depot to Real Estate Investments Group Ltd for GBP370,000.
Connect - which is a specialist distributor - said it will use the proceeds from the sale to reduce net debt and repay part of its revolving loan facility, as well as achieve a more efficient balance sheet.
In September, Connect announced the sale of six distribution depots covering a combined 84,872 square feet to Urban Logistics REIT PLC for GBP9.9 million.
"We are pleased to be able to report that we have now exchanged contracts on a further two Tuffnells properties. We look forward to formally completing on each of these properties in due course and, furthermore, exploring other possible sale and leaseback opportunities for the remaining Tuffnells freehold real estate portfolio, where those opportunities meet the board's expectations in respect of value, economic return and timings," said Chief Financial Officer Tony Grace.
Shares Connect Group - which is headquartered in Swindon - closed 3.3% higher at 30.00 pence on Thursday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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