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Commercial Property News
Woolworth sell 9 leases to Tesco and Sir Alan takes a 4% stake
Woolworths Group has agreed to sell leases on up to nine stores to supermarket giant Tesco Plc for up to £9 million. It said proceeds from the disposals, which are expected to take up to six months, will be used to reduce group borrowings. Assuming all nine leases are transferred, a profit of about £7 million would be generated, Woolworths said.
This will be disclosed as part of operating profit from property transactions, it said.
Shares in Woolworths have lost 83% of their value over the last year.
At 0936 GMT they were up 0.26 pence, or 8%, at 3.39 pence, valuing the business at £50 million.
Last month Woolworths posted a record first-half underlying loss and suspended its dividend payment.
Earlier this week it said it was comfortable with its financial and cash positions and was continuing to trade normally with its suppliers despite their loss of credit insurance cover.
Sir Alan Sugar, the millionaire founder of Amstrad computers and host of BBC television's The Apprentice, has purchased a near 4% stake in Woolworths Group Plc, an industry source said today.
A stock exchange statement confirming Sugar's purchase is expected as early today, the source said.
Woolworths declined to comment and Sugar was not immediately available to comment.
This will be disclosed as part of operating profit from property transactions, it said.
Shares in Woolworths have lost 83% of their value over the last year.
At 0936 GMT they were up 0.26 pence, or 8%, at 3.39 pence, valuing the business at £50 million.
Last month Woolworths posted a record first-half underlying loss and suspended its dividend payment.
Earlier this week it said it was comfortable with its financial and cash positions and was continuing to trade normally with its suppliers despite their loss of credit insurance cover.
Sir Alan Sugar, the millionaire founder of Amstrad computers and host of BBC television's The Apprentice, has purchased a near 4% stake in Woolworths Group Plc, an industry source said today.
A stock exchange statement confirming Sugar's purchase is expected as early today, the source said.
Woolworths declined to comment and Sugar was not immediately available to comment.
Wed, 14th Jul 2010