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£10m lease deal for HR Owen?

HR Owen subsidiary Jack Barclay may decide to move its aftersales site in Wandsworth, London, following a proposed development by the property freeholder.

As the lease does not expire until 2017, HR Owen would receive £10 million for surrendering the site early, paid in instalments by 2012.

If the development does not happen and HR Owen stays in Wandsworth, it will still receive £2 million for the trouble of going through the process, £1 million of which is from a two-year rent-free deal.

Nick Lancaster, HR Owen managing director, said if the property surrender and lease agreement went through, the money would be spent in acquiring a new site either leasehold or freehold and would also help reduce its gearing.

“It puts us in a strong position.” He expects a decision by April 2009.

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