HEALTH and beauty retailer Boots is said to be planning to raise around '300m from the sale and leaseback of some of its 1,400 stores.

Reports said the move would provide chief executive Richard Baker with the capital needed to see through a three-year turnaround programme.

Around a third of the group's stores are thought to be freehold, although reports said Boots was unlikely to sell the entire portfolio. A spokesman for the Nottingham-based company said no plans were "imminent", but refused to rule out a deal in the future.

"We periodically review our strategic options, but there's no deal imminent," the spokesman added.

Festive

The speculation comes a week after Boots hailed the success of its strategy following a 2.6 per cent rise in like-for-like sales over the Christmas period.

Boots put its turnaround programme on hold for the festive season, but warned investors much still needed to be done to improve its performance, including changes to its supply chain and computer systems.

The retailer is investing '390m in the current financial year with '250m going on capital investment and a further '140m being ploughed into price cuts and 60 new store openings. It has already extended ranges, invested in larger stores and stretched opening hours.

Proceeds from a property deal may also help fund a two-year '700m share buy-back programme previously announced by the company.

One possible drawback of a sale and leaseback is that it could hit Boots' credit rating -property ownershipis seen as a sign of financial strength by some in financial circles. Tweet