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Pendragon sells sites for £10m

Pendragon sold three sites for £10 million at the end of last month.

The sites are located in Preston, Mansfield and Stockport and represent the Ford, Fiat and Saab franchises.

The Nottingham-based firm announced its latest sale-and leaseback deal after warning last month of a £12m profits shortfall for 2007 due to falling prices in the new car market.

Pendragon, which operates the Evans Halshaw and Stratstone brands, also lowered profits forecasts for 2008 by £18m in the "uncertain economic outlook" and added that its view of the market was unchanged.

The latest move in the dealership's programme of disposals will see it gain £6m on the sale - bringing profits on property sales to £15.3m this year. Pendragon also expects to gain proceeds of around £34m from other sites currently under offer.

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