CHANDLER'S FORD- based B&Q home improvement chain, is to buy 28 development sites in a £219 million move to expand its superstores.
The development sites are currently owned by supermarkets group Sainsbury which is selling off its Homebase DIY retail chain along with the 28 sites which had been earmarked for new Homebase stores.
B&Q's parent group, Kingfisher, said it would pay a maximum of £219 million, in cash for the development sites.
The sites, some of which are freehold and some leasehold, will be developed as B&Q Warehouses. Most of them were to have been Homebase stores. The agreement includes refunds should full planning permission not be granted for any site.
Kingfisher chief executive, Sir Geoffrey Mulcahy, said: "Over two thirds of B&Q's sales growth comes from the Warehouse format. The acquisition of these sites will enable us to accelerate the roll out of these highly successful stores, further strengthening our leadership position in the UK.'' Sainsbury is selling Homebase to venture capitalist Schroder Ventures for £750 million, but plans to invest £31 million in Homebase to retain an 18 per cent stake.
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