Leroy Merlin denies selling its logistical parks

Leroy Merlin, a French-headquartered home improvement and gardening retailer, has denied any intention to get rid of its warehouses in Russia. The company said it doesn’t plan any changes in its operation and won’t sell its warehouses (270,000 square meters) near Moscow, according to RBC news agency citing the company’s press service.

Earlier this week Kommersant, a Russian business edition, reported that Leroy Merlin is seeking a buyer for its logistical parks Yuzhny Vrata and Bely Rast near Moscow. These two warehouse facilities are estimated about $147 million.

According to Kommersant, the company pursued a sale & leaseback deal and even had a series of negotiations with Central Properties and Ventall Development, two potential buyers of the property. The newspaper also suggested that the deal was necessary to financially support Leroy Merlin in Russia because French owners refused to do so.

Last month, ADEO Group, the company’s owner, said that the company in Russia is now managed by local managers. This decision was driven by the war in Ukraine and should now be approved by Russian authorities. ADEO has stopped pouring investments in its Russian division, so the transfer of the business to local partners will let them keep the company afloat and provide jobs for 45,000 employees in Russia.