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CTI LOGISTICS LIMITED Capital/Financing Update 2015
64663_rns_2015-10-14_d97ede1e-2708-4d92-a058-2b1cc686526e.pdf
Capital/Financing Update
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ABN 69 008 778 925
1 Drummond Place West Perth WA 6005
Postal Address PO Box 400 West Perth Western Australia 6872 Telephone (08) 9422 1100 Facsimile (08) 9227 8000 Email [email protected] Web www.ctilogistics.com
15 October 2015
Company Announcement ASX
Via ASX Online
CTI LOGISTICS LIMITED SALE AND LEASEBACK OF PROPERTY
The directors of CTI Logistics Limited (CTI) are pleased to announce the sale and leaseback of the 40,824 square metre site located at 54 Miguel Road, Bibra Lake to Investec Australia Property Fund (IAPF) for \$26 million on a yield of 7.94%.
The property has been leased back from IAPF by a CTI subsidiary for a 12 year period.
The proceeds from the sale of the property have been used to reduce CTI's debt, restoring the gearing to more normal levels, with the profit on sale significantly increasing the net tangible assets per share.
As a result of the sale, CTI has retained sufficient balance sheet flexibility to make further acquisitions and will continue to look for opportunities to reduce debt through the sale of selective mature property assets from the Company's extensive and long-standing property portfolio.
Yours faithfully
David Mellor COMPANY SECRETARY