Online bathroom retailer Victorian Plumbing Group has signed a 20-year lease on a purpose-built distribution centre in Lancashire, to support its strategic expansion.

This investment will provide the Group with further operational capacity and to help strengthen its position in the market.

The 544,000 sq ft distribution centre is scheduled to be completed in Autumn 2023 and will become fully operational after a period of dual running with existing sites to create a smooth transition.

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Victorian Plumbing Group will invest in fitting out the new distribution centre through the current and next financial year.

The new distribution centre will enable consolidation of a number of the Group’s existing sites, however, some existing facilities will be retained to enable further category expansion.

Around a £50m right of use asset, together with a corresponding lease liability of the same value, will be recognised on the balance sheet following completion of the fit out.

After the initial period of investment and operational transition, Victorian Plumbing Group states cash outflows associated with this lease will be “broadly” neutral when compared to current property costs.

Founder and chief executive officer of Victorian Plumbing Mark Radcliffe commented: “This new facility represents another exciting milestone for the business, providing us with capacity to manage growth in the long-term while further establishing Victorian Plumbing’s position as the No. 1 bathroom retailer in the UK.

“I am also delighted that this new facility will create additional jobs and further support our investment in the local area.”