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Norcros acquires freehold of Sheffield property

By BFN News | 01:12 PM | Friday 07 November, 2014


Norcros - a leading supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives - has completed the exit of its legacy lease and acquired the freehold of the property at Orgreave Drive, Sheffield, for £3.4m cash. The property is a 96,822 square feet warehouse and offices on which Norcros took a 99 year lease in 1983. The site has been surplus to requirement for a number of years and vacant since 2008. The total cash occupancy cost to Norcros is £0.4m per annum, £0.2m of which is rental. There are 68 years remaining on the lease and at current rent levels and no discounting, outstanding rental amounts to £14m. It is anticipated that this transaction will give rise to an exceptional charge in the region of £2.5m in the second half of the year to 31 March 2015. Group chief executive Nick Kelsall said "I am delighted that we have resolved this long legacy lease obligation at Sheffield which is a great result for our shareholders." The company two remaining legacy leaseholds - both in Swindon. The lease at Drakes Way ends in December and after this the only remaining legacy lease will be at Groundwell on which the head lease runs to 2022, and which is currently sub-let to Network Rail through to December 2018 at a cost of £0.2m per annum to Norcros. At 1:12pm: (LON:NXR) Norcros PLC share price was -0.25p at 15.75p Story provided by StockMarketWire.com

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