- DW8 (DW8) has completed the sale and long-term leaseback of the national distribution centre (NDC) in Victoria
- Last December, the company signed binding agreements to effect purchase, sale and long-term leaseback relating to its NDC
- As part of the agreement, the new property owners have also agreed to purchase the temperature control installed in the NDC and lease these back to WINEDEPOT
- Now, funds totalling over $4.8 million has been collected
- On the market this morning, DW8 is up 4.05 per cent and trading at 3.9 cents per share
DW8 (DW8) has completed the sale and long-term leaseback of the national distribution centre (NDC).
Last December, the company signed binding agreements to effect purchase, sale and long-term leaseback relating to its NDC.
The NDC is located in Barnawartha, on the outskirts of Albury-Wodonga Victoria. WINEDPOT leases a 7250 square metre warehouse on a 40,000 square metres site, which it uses as its NDC
As part of the leaseback agreement, the new property owners have also agreed to purchase the temperature control systems recently installed in the NDC and lease these back to WINEDEPOT.
Funds totalling over $4.8 million has been collected, which includes $3.7 million one-off capital gain generated through the sale process and over $1 million of previously invested capital expenditure.
“We are very pleased to have completed this transaction,” CEO Dean Taylor said.
“Beyond the $4.8 million working capital that it releases for the company, it provides DW8 with a highly experienced property partner who can assist us in the development of the additional capacity required to support expected future growth.”
Last month, DW8 reported a 78 per cent climb in revenue to $5.4 million, compared to the previous quarter.
Notably, this includes only three weeks of revenue contribution from B2B liquor business Kaddy, which it acquired in early December.
On the market this morning, DW8 was up 4.05 per cent and is trading at 3.9 cents per share at 10:21 am AEDT.