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News Release

London

JLL Retail comments on Homebase purchase by Wesfarmers


​Commenting on the announcement of the sale of Homebase,  Tim Vallance, head of JLL UK's  Retail and Leisure team, said:   "The Australian retailer has seen a big opportunity that exists in the UK home improvement and leisure market. The market contracted during the recession and wasn't immune to the internet, albeit DIY is more defensive than other sectors.

"While the UK lost Focus DIY and B&Q is aggressively downsizing its estate, the housing market is growing rapidly and consumers have more money in their pockets. In addition to the growing housing supply, transactional costs for moving house have increased and people are now choosing not to sell and renovate instead. It's a growing market and one that is ripe for retailers to expand into and develop new offerings.

"Last year saw a couple of key investment deals in the outdoor leisure sector such as Blackrock's acquisition of LaSalle Investment Management's Garden Centre fund. This highlights the growing institutional appetite for this market which is set to continue into 2016. Wesfarmers brings over 100 years of experience in the DIY sector and the promise of a £242m upgrade to Homebase stores will provide a shot of adrenaline to the DIY market, provided of course that Home Retail Group shareholders agree to the purchase."