B&Q parent Kingfisher has decided to release its freehold development site at Fiveways in Croydon.
Originally acquired in 1998 as a potential new B&Q warehouse store, the 11.3 acre site is to be disposed of as part of the retailer's strategy to maximise returns from existing space in the UK rather than open new large format stores.

Kingfisher's group property director Ian Playford said: "As you can see from our full year results last week, the UK business has performed well by focusing on existing sales space and reducing operational costs at the same time as exploring new formats and ranges within existing stores. We have a strong balance sheet, having significantly reduced our financial net debt through a rigorous focus on cash generation. As a result, we are happy to speak to buyers who can offer us assets and development opportunities as well as purely cash deals."

He continued: "The sale of this development site is part of Kingfisher's plans to maximise returns on our capital. New large B&Q stores have not been on our agenda for some time and landlords and arbitrators are starting to understand that this part of the property market is ex-growth."

In the UK, B&Q agreed 24 nil rental uplifts in 2009 and has now agreed 43 nil uplifts on larger stores since September 2005. No new large stores have been committed since then as the retailer focuses more on low cost store revamps. In the past year B&Q revamped nearly 100 of its 330 stores in the UK and Ireland.

Mr Playford said: "B&Q's property team is actively developing their existing portfolio and looking for some infill stores. The current market is providing us with some good opportunities at affordable levels. We are also working closely with landlords in the UK to re-gear leases, sharing in the value potential created by lease expiries."