NZ Herald News - November 6, 2009
Downer EDI Works, the listed national infrastructure business, is advertising 22 properties in a big sale-and-leaseback deal. Cos Bruyn, Manukau-based chief executive, said Downer wanted to free up capital and get out of real estate so it could expand the business into new areas.
The diversified engineering and services group is offering to lease back its big works depots and provincial bases for 10 to 20 years, paying new owners so it can continue to operate from the same sites. Downer will pay an annual rent on each property of from $12,000 to $1.17 million. It operates here as a subsidiary of the Australian business but is listed on NZX.
Six large regional depots are being advertised for sale by private treaty closing on November 26, to be leased for 20 years. The other 16 properties will be leased on decade-long terms with four rights of renewal for five years. Those will be offered at two auctions.
Charles Cooper, Colliers International's Queen St-based national industrial director, said the agency had been involved in sale-and-leaseback deals this year for NZ Post, Fisher & Paykel Appliances and Farmlands.
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