Britain's Kingfisher close to retail parks sale

Home improvement retailer Kingfisher is close to selling its retail parks portfolio for a pre-tax price of around £700 million…

Home improvement retailer Kingfisher is close to selling its retail parks portfolio for a pre-tax price of around £700 million, an industry source said today.

The price is about £200 million above the parks' book value- but in line with analysts' expectations, the source said.

The sale will come just days after Kingfisher agreed to sell its loss-making German electricals business, as the owner of the B&Q home improvement chain continues to refocus on its high-growth DIY (do-it-yourself) operations.

The source said there were three potential buyers on the shortlist for the retail parks and that an announcement was likely to be made early this week.

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Kingfisher was likely to pay about £70 million to £80 million of tax on the sale, the source said.

This morning, Kingfisher shares were 2.1 per cent higher at 203-3/4 pence as the wider British market edged up 0.4 per cent.