Troubled dairy company Synlait Milk (SML) has more than doubled its money on sale of its Auckland property that it bought a little over four years ago.
The proceeds will go towards paying off debt.
The company, which on Wednesday announced plans to cut about 15% of its workforce - ahead of announcing a loss for the latest year - told the NZX on Thursday it had had confirmed a sale-and-leaseback of its premises at Richard Pearce Drive, Mangere. It didn't say who the buyer was.
The sale price is $30.05 million, and the initial lease term is 10-years. Settlement will take place on October 4, 2021.
When Synlait acquired Richard Pearce Drive in May 2017, the land and buildings were valued at $12.4 million.
The company said Synlait Auckland forms part of the company’s North Island manufacturing network providing additional blending and canning capacity, warehousing, and office space.
Synlait chief executive John Penno said the opportunity to sell and leaseback the land and buildings at Richard Pearce Drive was "attractive to Synlait as it will free up cash and allow us to pay down debt".
"The lease will have an initial term of 10 years, with further rights of renewal, providing plenty of long-term certainty and flexibility for our business."
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