This article is from the Australian Property Journal archive
REDHILL Partners have entered a $16.2 million sale and leaseback agreement with AusGroup Limited for an industrial property in Kwinana Beach, WA.
15 Beach Street sits around 35km south west of the Perth CBD and comprises an expansive industrial facility with extensive office spaces, workshops and factory bays for 14,299sqm of GLA on 31,258sqm of freehold land.
Under the terms of the leaseback deal, AusGroup would continue to occupy the property, which is being utilised as a fabrication and assembly facility, under a ten-year lease term, commencing at $1 million per annum.
In offloading the asset to specialist investment manager, Redhill Partners, AusGroup’s board anticipates it will be able to realise the value of the property.
After transaction costs, the sale should provide the group with $13.4 million in cash to increase working capital and aid debt management, with the remaining $2.6 million to be used for bank guarantees for the lease.
The sale also represents a net gain on disposal of around $5 million, as at Q3 2022, with the book value and net tangible asset value as at the same date at $6.3 million and the excess of the consideration over book value at $9.9 million.
