- Matrix Composites and Engineering has signed a sale and leaseback contract with a WA property investor for its Henderson facility
- Australasian Property Investments will have 30 days to buy Matrix’s buildings and leasehold improvement assets for $20 million
- Matrix will receive a $100,000 deposit from the investor with a potential extra $900,000 payout
- Funds will position the company to make the most of future orders in the oil and gas markets
- Matrix shares are up 2.82 per cent today, with shares trading at 36.5 cents each
Matrix Composites and Engineering has entered a sale and leaseback agreement for its Henderson facility.
The engineering solutions provider has signed a contract with Australasian Property Investments (APIL), a leading Western Australian property investment company.
The contract provides APIL with an exclusive 30-day option to acquire Matrix’s buildings and leasehold improvement assets for $20 million.
“We are delighted to be partnering with a property and asset infrastructure company of APIL’s standing and market presence as Matrix pursues its product and business diversification strategy as well as continues to service re-emerging demand from its core oil and gas customer and industry base,” Matrix CEO Aaron Begley said.
The transaction will represent APIL’s 29th property acquisition and takes the total value of its portfolio to over $1 billion.
APIL will be assigned the existing long-term lease from Landcorp, subject to being granted a complementary sub-lease of the total land, buildings, and leasehold improvement assets back to Matrix.
Matrix will receive a $100,000 deposit from APIL and, if it chooses to exercise the 30-day option, APIL will pay a further $900,000.
APIL will sub-lease the facility back to Matrix for a 20-year period and Matrix will choose whether to extend this for a further 15 years.
The building lease payments will be $1.7 million per annum, subject to ongoing bi-annual rental uplift and five yearly ratchet market rental reviews.
Proceeds from the sale will position Matrix to be strongly capitalised and able to take advantage of potential future orders as the improvement in the oil and gas market gather momentum.
Matrix shares are up 2.82 per cent today, with shares trading at 36.5 cents apiece as at 11:59 am AEDT.