Flooring distributor Victoria PLC has announced that it has entered into a binding agreement for the sale and lease back of its Belgian distribution centre to Avantage Property Holding BV, a fund managed by Alirec.
The distribution centre will remain the key European distribution hub for Balta Rugs following the relocation of the majority of that company’s manufacturing to Turkey.
The gross consideration payable to the Company in cash at completion is expected to be EUR34.4 million, in line with the Company’s expectations. Completion is expected within 90 days and is subject to customary conditions.
The consideration compares to a net book value of the EUR5.6m as at 31 January 2026 and existing tax losses will be utilised to mitigate capital gains tax.
The net cash proceeds will initially be retained on the Company balance sheet. Alongside two additional surplus property disposals, the proceeds are expected to fully fund the exceptional costs and capital expenditure associated with the transfer of manufacturing to Turkey.
Geoff Wilding, Executive Chairman of Victoria, commented: “This agreement secures continued use of an important site while unlocking capital to mitigate the costs associated with expanding production capacity at Balta’s Turkish plant and relocating the majority of its rug manufacturing to that site.
“This major project is expected to be completed and begin providing benefits during the current financial year.”
