11th Oct 2007 11:09
Home Retail Group Plc11 October 2007 11 October 2007 Home Retail Group plc Purchase of 27 Focus DIY store properties Home Retail Group plc, the UK's leading home and general merchandise retailer,announces that it has today signed a contract for the purchase of 27 leaseholdproperties from Focus DIY. The purchase price being paid is £40m in cash. The properties are expected to be transferred over the period up to 31 December2007 and will then be re-fitted to the Homebase fascia over the course ofseveral months in readiness for the peak Spring period. No other infrastructureand no merchandise stock are being acquired as part of the transaction. There-fit capital investment is expected to amount to approximately £30m. Therewill also be an amount of transitional operating costs incurred from date oftransfer to commencement of trading the properties. The current estimate of thelevel of these costs to be incurred in the second half of this financial year isapproximately £15m. Commenting on the purchase, Terry Duddy, Chief Executive of Home Retail Group,said: "The purchase of these properties enables us to accelerate Homebase's openingprogramme and the ongoing management of our store portfolio. The acquiredproperties will be refitted and remerchandised with the broader Homebase offer,as we continue to position the business as the UK's leading home enhancementretailer." Enquiries Analysts and investors (Home Retail Group) Richard Ashton Finance Director 01908 600 291Stuart Ford Head of Investor Relations Media (Finsbury) Rollo Head 020 7251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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