Victorian Plumbing Group Signs 20-Year Deal For Goldman-Owned Shed
UK online specialist bathroom retailer Victorian Plumbing Group has signed an agreement for a 20-year lease for a new, 544K SF, purpose-built distribution centre in Lancashire, located close to its existing operations.
The new distribution centre is scheduled to be completed in autumn 2023 and will become fully operational after a period of dual running with existing sites to ensure a smooth transition, the company said.
Caddick Construction is building the industrial unit for asset manager Canmoor and ultimate owner Goldman Sachs.
The new distribution centre will support the group's strategic expansion and will enable consolidation of a number of the group's existing sites, although some existing facilities will be retained to enable further adjacent category expansion.
Victorian Plumbing Group will invest in fitting out the new distribution centre through the current and next financial year. Its investment will provide the group with additional operational capacity to support its growth, “further strengthening our market leading position”, the company added.
A circa £50M right of use asset together with a corresponding lease liability of the same value will be recognised on its balance sheet, following completion of the fit-out.
After the initial period of investment and operational transition, cash outflows associated with this lease will be broadly neutral when compared to current property costs, the company said.
On 6 December Victorian Plumbing Group reported full year results for year-end 30 September, with H2 revenue growth up 6% on last year, with revenue for the year broadly flat at £269M but up 78% on full-year 2019.