Kingfisher plc - Retail Sale - £614 Million Portfolio

Date: 13 Aug 2001

Kingfisher plc today announces the sale of 182 high street investment properties, through Chartwell Land its specialist retail property subsidiary. These properties have been sold for £614 million to a partnership between London & Regional Properties and Goldman Sachs' Whitehall Fund.

The sale price represents a £19 million premium to the book value which was £595 million, as at 3rd February 2001. In total the increase in value of these properties during Kingfisher's ownership has been £223 million. 152 of the properties are high street stores let to Woolworths plc, a wholly owned subsidiary of Woolworths Group plc, with the balance of stores occupied by Superdrug Stores plc and other third party tenants.

The sale of these properties marks a further step towards completing the separation of the General Merchandise Division of Kingfisher. This has included the demerger of Woolworths Group, details of which were announced on 1st August 2001, and the sale of Superdrug, which was completed on 20th July 2001.

£600 million of the consideration is payable in cash on completion. The balance of £14 million is payable in cash within 5 years of completion, secured through a charge on the total assets of the portfolio. The cash received will be used to repay Kingfisher borrowings. The sale of the bulk of the portfolio will complete by 31st August, 2001, with the balance completing later when the relevant landlords' consents have been obtained.

Completion is conditional on Woolworths Group having been admitted to trading on the London Stock Exchange with an investment grade credit rating. Admission is expected to be 28th August 2001, subject to Kingfisher shareholders' approval on 24th August 2001.

Kingfisher and Chartwell Land were advised by Credit Suisse First Boston and CB Hillier Parker on this transaction.

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