15th Dec 2006 11:56
Travis Perkins PLC15 December 2006 15 December 2006 TRAVIS PERKINS PLC Travis Perkins realises £11m property profit Travis Perkins announces that in line with its stated strategy to release valuefrom its property portfolio, 35 freehold properties have been sold to aninvestment vehicle, in which the group retains a 15% stake, for £31m aftercosts. The properties, which have been leased back by the group on 25 yearterms, on a near 6% yield, realised a net profit of £11m in 2006. The companyplans to re-invest the proceeds in new and existing properties as it continuesto expand across its six brands. Commenting on the transaction Geoff Cooper, chief executive, said: "This is our biggest ever property deal and represents an important step in ourimplementation of the group's policy of maximising value through the developmentof its property portfolio." The group currently operates from over 1,000 sites of which 377 are freehold orlong leasehold. As well as being one of the group's considerable operatingstrengths the freehold portfolio gives us the potential to seek furtheropportunities to enhance value. It is likely that disposals in future years willbe on a smaller scale with the emphasis on driving profits from relocations,part disposals and site redevelopments. - ends - Enquiries: Paul Hampden Smith, Finance DirectorTravis Perkins PLC Tel: +44 (0)1604 683 221 David Bick/Mike FelthamHolborn Public Relations Tel: +44 (0)207 929 5599 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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