Altrincham-based car dealership Lookers plc announced it has completed the sale and leaseback of a freehold dealership property in Battersea, London with Urban Logistics.

“The sale proceeds are £28m in cash and Lookers has a 20-year lease for the property at an initial rent of £1.25m per annum,” said Lookers.

“Urban Logistics is a REIT, listed on the London Stock Exchange, focused on a specialist sub-sector of the UK real estate market, investing in mid-sized urban logistics buildings.

“The property comprises 95,000 square feet and had a net book value of £10.3m as at 31 December 2021.

“Under IFRS 16, right of use assets and associated leased liabilities worth c.£19m will be reflected on the group’s balance sheet.

“The proceeds will be used to invest in the group’s strategic priorities and will further strengthen the group’s balance sheet. 

“The group now holds property assets with a net book value of approximately £290m, representing 74p per share.”

Lookers CEO Mark Raban said: “We’re pleased to have agreed the selective sale and leaseback of our Battersea property.

“The transaction demonstrates the value of the group’s property portfolio, underpinning our strong balance sheet.

“The proceeds give us additional flexibility to fulfil our aspiration to become the UK’s leading integrated automotive retail and services group.”