Home Retail to acquire assets from Focus DIY
The properties are expected to be transferred over the period up to December 31, 2007, and will then be re-fitted to the homebase fascia over the course of several months in readiness for the peak spring period. No other infrastructure and no merchandise stock are being acquired as part of the transaction. The re-fit capital investment is expected to amount to approximately GBP30 million. There will also be an amount of transitional operating costs incurred from date of transfer to commencement of trading the properties. The current estimate of the level of these costs to be incurred in the second half of this financial year is approximately GBP15 million. Terry Duddy, chief executive of Home Retail Group, said: "The purchase of these properties enables us to accelerate homebase's opening program and the ongoing management of our store portfolio. The acquired properties will be refitted and remerchandised with the broader homebase offer, as we continue to position the business as the UK's leading home enhancement retailer."