Kingfisher, British parent of B&Q and Castorama retail home improvement stores, has agreed to a 73 million pound (US$148 million) property sale and leaseback of its 875,000-square-foot national distribution center in Worksop, Nottinghamshire.

The deal, with Mutual Finance, will allow the DC to be leased back at an open market rent, the company said. The company will receive a pre-tax gain of 40 million pounds (US$81.2 million).

Kingfisher will use the proceeds to repay existing debt and invest in its worldwide store opening plans.

“This is consistent with our policy of recycling property when economically attractive, with the aim of creating value for shareholders," said Duncan Tatton-Brown, group finance director for Kingfisher.