Smiths City to sell Colombo St property for $20 mln in sale and leaseback arrangement

Friday 7th August 2015

Smiths City, the Christchurch based retail chain, has agreed to sell its Colombo St property in a sale and leaseback arrangement, pending agreement from shareholders at this month's annual meeting.

The company has entered into a conditional agreement with an unnamed buyer to sell the site for $20 million, plus GST, and enter into a leasing arrangement paying annual rent of $1.4 million plus GST and outgoings, Smiths City said in a statement. The deal is expected to be completed on Sept. 18, subject to due diligence and lease approval by the buyer, and Smiths City shareholder approval at the company's Aug. 25 annual meeting in Christchurch.

Smiths City signalled the possibility of a sale and leaseback deal when reporting its annual result in July, and hired Colliers International to gauge market interest in the property.

The shares were unchanged at 52 cents, and have decreased 3.7 percent this year.

BusinessDesk.co.nz

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