Join our daily newsletter At The Bell to receive exclusive market insights
- Joyce Corporation (JYC) will sell its corporate office and warehouse facility in Osborne Park, Western Australia for $5.5 million
- Upon the sale of the property, Joyce will lease the space from the purchaser for 5 years, with two further five year options
- The company will be able to lease the office space and 1 of 3 warehouses
- Shares are trading 0.88 per cent lower today at $3.37 per share
Joyce Corporation (JYC) has announced it has entered into a sale and leaseback agreement for its corporate office and warehouse facility in Osborne Park, WA.
The property will be sold for $5.5 million in cash after the purchaser obtains finance within 60 days of the date of the sale agreement.
Upon the sale of the property, Joyce will lease the space from the purchaser for 5 years, with two further five year options. The company will be able to retain tenancy of the office space and 1 of 3 warehouses.
Chief Executive Officer Dan Madden says the arrangement is consistent with the strategic direction of the business.
“Joyce is first and foremost focused on organic growth opportunities for both KWB and Bedshed and an expansion of the footprint of our KWB Group and Bedshed retail stores,” he said.
“We will also apply a disciplined framework to continue to explore new growth opportunities that support long term, sustainable growth. In doing so we will apply a filter to look in adjacent sectors or complementary areas that have a natural fit with our existing portfolio and expertise or offer other synergies.
“Opportunities that require a relatively low capital outlay are of particular focus and may come from new organic growth activities from the ground up, or from opportunistically considering potential acquisitions if they are of a commensurate size and scale.”
Shares are trading 0.88 per cent lower today at $3.37 per share at 3.56pm AEDT.
