24 Apr 2023 10:35

Leroy Merlin may sell off Russian warehouses

MOSCOW. April 24 (Interfax) - French DIY retailer Leroy Merlin may sell off its warehouses in Russia and enter into a lease agreement with the chain's new owners, Kommersant reported, citing its own sources.

The company owns two facilities - about 130,000 sq. m. in the South Gate complex in Domodedovo and 140,000 sq. m. in the Bely Rast complex in the Dmitrovsky district of the Moscow region.

According to the publication, Central Properties and Ventall-Development are both contenders for the assets, the former having already made an offer to buy out the South Gate space.

Leroy Merlin did not respond to Kommersant's inquiry. Central Properties co-owner Sergei Egorov and Ventall-Development CEO Valery Zhukov also declined to comment.

In March, the French group Adeo, which includes Leroy Merlin, announced plans to transfer control of Leroy Merlin's Russian business to local management. The deal must first be approved by Russian regulators. It was reported that the sale of control would ensure the company's activities continue at the local level, as well as secure the jobs of the company's 45,000 employees.

Leroy Merlin is a retailer of products for construction, decoration and home improvement, cottages and gardens. The first Russian store in the chain opened in 2004 in the Moscow region. According to the information posted on the company's website, the company's Russian chain is comprised of 107 hypermarkets in 62 cities.