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Lookers completes £28m sale of Battersea Volkswagen dealership website

Lookers completes £28m sale of Battersea Volkswagen dealership website

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Lookers has accomplished the sale and leaseback of its freehold Volkswagen automobile dealership property in Battersea for £28 million.

The AM100 automobile retail group’s £10 million showroom, at York Street, Battersea, was opened in partnership with Linden Properties’ £100m mixed-use housing and industrial growth again in January 2019.

Now the group has accomplished the property’s sale and leaseback to City Logistics, a REIT which is listed on the London Inventory Trade.

A press release issued by Lookers mentioned that the sale proceeds are £28m in money and Lookers has a 20-year lease for the Property at an preliminary lease of £1.25m each year.

Lookers chief government Mark Raban, who was lately interviewed for a Lookers profile characteristic in AM, mentioned: “We’re happy to have agreed the selective sale and leaseback of our Battersea property.

“The transaction demonstrates the worth of the group’s property portfolio, underpinning our robust steadiness sheet.

“The proceeds give us extra flexibility to fulfil our aspiration to grow to be the UK’s main built-in automotive retail and companies group.”

Lookers’ former freehold property in Battersea includes 95,000 sq. ft and had a internet guide worth of £10.3m as at 31 December 2021.

Underneath IFRS 16, proper of use belongings and related leased liabilities price c.£19m might be mirrored on the group’s steadiness sheet, Lookers’ assertion mentioned.

“The proceeds might be used to put money into the group’s strategic priorities and can additional strengthen the group’s steadiness sheet,” it added.

“The Group now holds property belongings with a internet guide worth of roughly £290m, representing 74p per share.”

In his two years on the helm, Raban has navigated Lookers by means of a cost-cutting restructure which lower a complete of 27 retail websites and important headcount from the one-time AM100-topping automobile retail group as a part of a profitable bid to cement a return to profitability.

A buying and selling replace revealed by way of the London Inventory Trade in January revealed the group anticipated to realize report underlying revenue earlier than tax “forward of the earlier market consensus of £82m for 2021” days earlier than Constellation Automotive adopted its transfer to accumulate Marshall Motor Group with the buy of a 19.9% stake in Lookers.

The group is now poised to start out a brand new period at a redeveloped headquarters, Lookers Home, in Altrincham, Higher Manchester.

Raban mentioned Lookers is now poised to “attempt one thing totally different” following a historical past of progress by means of acquisition.

A brand new strategic framework will goal to “maximise the income and revenue alternatives” from altering shopper behaviour, the influence of electrical autos (EVs), creating relationships with OEMs and altering know-how, the January buying and selling replace mentioned.

The final word goal, Raban mentioned on the time, is to grasp an “ambition and aspiration to grow to be the UK’s main built-in automotive retail and companies group”.

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