The building products’ manufacturer has sold a half-share in a portfolio of 15 manufacturing sites to industrial property giant Goodman Group for $207m.
Building materials manufacturer Brickworks has cashed on the boom in industrial land values after selling a half-stake in a portfolio of 15 manufacturing sites to logistics giant Goodman Group for $207 million in a partial sale-and-leaseback deal.
After accounting for tax, duty and transaction costs, Brickworks will take home net proceeds of around $193 million, which it will use to pay down debt.Brickworks managing director Lindsay Partridge said the deal would allow the company to “capitalise on the strong growth in industrial land values over the past few years” and was “the next step in its property strategy”.
“Overall the deal is broadly cashflow and profit neutral from an operating perspective,” Brickworks chairman Robert Millner told“We’ll get 50 per cent of the rent back as well as generate interest savings and be able to pay down debt.The Brickworks Manufacturing Trust is the brickmaker’s second joint venture with Goodman Group alongside the long-running Industrial JV Trust which is developing new warehouse facilities for Coles, Woolworths, Australia Post and Telstra valued at about $3 billion.
In addition, there is the potential for additional development to be undertaken across sites owned by the manufacturing trust, Mr Partridge said
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