A private investor has formed a number of companies which will pay Dixon Motors £34m for 17 of its freehold and long leasehold sites. The group has been stretched by growth in its car and motorcycle businesses.
The agreement to sell and leaseback should be completed by January 26. The loan is repayable by Dixon in 60 monthly instalments, with the first payment on January 31. The loan bears interest at a rate of 1.25 percentage points above base.
Dixon Motors will lease each of the properties back on operating leases with a 30-year term. In a statement, Dixon Motors says it has continued to develop apace over the past 18 months. Most of the investment has been funded by increasing the group's debt which will be reduced through the deal. (November 20, 2001)