Warehouse to get pretax gain of up to $64 million

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.

BusinessDesk.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

The Warehouse Group
Warehouse FY profit jumps 61 percent on property sales, acquisitions
Warehouse firms up plans to pay more for staff with training, long service
Warehouse Red Sheds, stationery boost 3Q sales, FY guidance unchanged
Warehouse seeks better workforce with higher pay, more training
Warehouse almost doubles 1H profit on property sales, dividend beats expectations
Warehouse buys majority stake in online retailer Torpedo7 for up to $33M
Warehouse buys unprofitable Noel Leeming chain for $65M
Warehouse 1Q sales rise 1.9% as stationery leads growth
Warehouse buys Insight Traders