Business
Dollarama invests in new warehouse in Montreal and revises Capex guidance for fiscal 2017
Dollarama invests in new warehouse in Montreal and revises Capex guidance for fiscal 2017 ...
About this update from Dollarama Inc.
[{"type":"text","content":"\n\n\n\nDollarama invests in new warehouse in Montreal and revises Capex guidance for fiscal 2017\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nDollarama invests in new warehouse in Montreal and revises Capex guidance for fiscal 2017\nCanada NewsWire\nMONTRÉAL, Feb. 2, 2016\n\n\n\nMONTRÉAL, Feb. 2, 2016 /CNW Telbec/ - Dollarama Inc. (TSX: DOL) (\"Dollarama\" or the \"Corporation\") announced today that its Board of Directors approved an investment of approximately $60 million in the construction of a new warehouse in Montreal, Quebec. \n\nThe new 500,000 square-foot warehouse will be located in the Lachine borough near the intersection of highways 13 and 520, in close proximity to Dollarama's existing, centralized warehousing and distribution operations. The new facility will increase Dollarama's total warehousing capacity by approximately 40% on a square footage basis, thereby accommodating capacity requirements as the Corporation continues to expand its store network. \n\nGiven Dollarama's strong free cash flows, well in excess of the cost of the project, Dollarama has opted to own the facility instead of leasing it from a third party. The land, comprised of two contiguous properties, is being acquired from a party related to Dollarama, at the same price paid by such party in an arm's length transaction.\n\nAs a result of this investment, capital expenditures guidance for the fiscal year ending January 29, 2017 has been revised from a range of $100 million to $110 million to a range of $160 million to $170 million. The increase accounts for land and building costs as well as professional fees, but excludes some equipment costs which had already been factored into the initial forecast. \n\nConstruction is scheduled to begin in early spring, with completion expected towards the end of 2016.\n\nAbout Dollarama\n\nDollarama is Canada's leading dollar store operator with 1,005 locations across the country. Our stores provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities ...