5 Jul 2010 07:00
5 July 2010
Laura Ashley Holdings plc (the "Company")
Significant Property Transaction
The Company today announces that one of its subsidiary companies, Laura Ashley Limited ("LAL"), has entered into an agreement with British Overseas Bank Nominees Limited and WGTC Nominees Limited as nominees for The Royal Bank of Scotland plc as trustee of the Skandia Property Fund for the sale and leaseback of LAL's freehold property at Interlink Business Park, Bardon, Coalville, Leicestershire (the "Property") comprising a warehouse with attached two-storey office for a cash consideration of £12.35 million. The agreement comprises a £1.0 million deposit paid upon signing on 2 July 2010 with the remaining balance to be settled upon completion on 6 July 2010.
The Property will be leased back to LAL on a 12-year lease. The Property has a book value of £8.25 million and provides a gross internal area of approximately 169,000 sq. ft., which will continue to be used by the Company for warehousing and distribution purposes.
This transaction will give rise to a profit of approximately £4.0 million in LAL. The sales proceed will further strengthen the balance sheet of the Company which currently has no borrowing.
Enquiries
Kien-Mun Ho, Company Secretary 020 7880 5100