Home Retail Group news

Purchase of 27 Focus DIY store properties

11 October 2007

Home Retail Group plc, the UK’s leading home and general merchandise retailer, announces that it has today signed a contract for the purchase of 27 leasehold properties from Focus DIY. The purchase price being paid is £40m in cash.

The properties are expected to be transferred over the period up to 31 December 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 £30m. 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 £15m.

Commenting on the purchase, Terry Duddy, Chief Executive of Home Retail Group, said:

“The purchase of these properties enables us to accelerate Homebase’s opening programme 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.”

Enquiries

Analysts and investors (Home Retail Group)
Richard Ashton	Finance Director	01908 600 291
Stuart Ford	Head of Investor Relations

Media (Finsbury)
Rollo Head		020 7251 3801