The housing market in London’s Nine Elms area is booming. But Home Retail Group has decided to sell its DIY store Homebase in Battersea after receiving a £57m offer for the sought-after site.
The retailer said yesterday it had exchanged contracts to sell the huge site on York Road to Fifth Capital London, a little-known property firm set up by Marc Pennick and backed by Israeli investors.
The group will submit plans for a residential development on the two-acre site that could be worth £200m upon completion, according to Colliers International, which is advising on the deal.
Home Retail Group announced in October it planned to close a quarter of its 323 branches in the next three years, blaming an excess of retail space and the rise of a generation that had fallen out of love with DIY.
It expects to close around 25 stores in this financial year with a total of around 80 stores set to close by the end of March 2018.
The company said the deal would result in a gain on sale of around £38m being recorded as an exceptional item next year. Homebase will close in a year’s time after the deal has been completed.