Sale and lease back for Victoria

victoria3Victoria Carpet has sold its Kidderminster manufacturing plant in a deal that could see it pay almost £15m in rent over the next 20 years.

The company has sold the Worcester Road facility for £5.8m in cash in order to strengthen its balance sheet. It says the site had a book value of £4.9m.

Under the terms of the deal it will pay an initial annual rent to new owner Monopro of £495,000. This will be subject to an annual increases of between 0% and 4%. If there are no increases Victoria will pay £9.9m over the length of the lease, but with a 4% annual increase this rises to at least £14.74m.

Monopro is a property company owned by the Dangoor family.