Warehouse to get pretax gain of up to $64 million from sale, leaseback of properties
Aug. 27 (BusinessDesk) - Warehouse Group, the biggest retailer on the NZX 50 Index, will get a pretax gain of up to $64 million from the sale and lease back of properties including its North Island Distribution Centre in Wiri, Auckland.
Settlement of the four properties is expected to be completed in September, realising total proceeds of $117 million. The retailer has unconditional contracts to sell the Wiri site and two stores and a conditional contract to sell a third store, it said.
The sale proceeds will be reinvested in the business in line with the priorities identified in the company’s strategic plan, it said. The plan was fist flagged in early June.
At the company’s annual shareholders' meeting last year, Warehouse said it would sell between $75 million and $100 million of “non-strategic assets” over the next five years.
Warehouse shares fell 1.4 percent to $2.85 and have fallen 3.7 percent this year.