Steel & Tube Announces Sale and Leaseback of Property

Level 7, IBM Building
25 Victoria St, Petone
P O Box 30543, Lower Hutt 5040
21 June 2018
STU/NZX announcement
STEEL & TUBE ANNOUNCES SALE AND LEASE BACK OF BLENHEIM ROAD PROPERTY
Steel & Tube Holdings Limited (NZX: STU) has signed an unconditional agreement to sell its property
at 375 Blenheim Road, Christchurch for $21.1 million on a sale and lease back basis. The transaction
is expected to be completed on 29 June 2018.
Steel & Tube Chief Executive Officer, Mark Malpass, said: “This arrangement allows us to retain our
successful operations in the newly upgraded Blenheim Road distribution hub under favourable lease
terms, while freeing up capital to pay down debt.”
Steel & Tube’s established operations, long term plans and recent investment into the property
made it an attractive acquisition with interest from multiple parties.
Steel & Tube expects the sale will result in the Company recognising a gain on sale of approximately
$1.3 million in the financial year ending 30 June 2018. Steel & Tube advises that the earnings
guidance provided to the market on 23 May 2018 did not include any gain on sale.
-ENDS-
Greg Smith
Chief Financial Officer & Company Secretary
STEEL & TUBE
For further information please contact:
Greg Smith
Steel & Tube CFO
Tel: +64 21 755 803
Email:
greg.smith@steelandtube.co.nz
Jackie Ellis
Media and communications
Tel: +64 27 246 2505
Email:
jackie@ellisandco.co.nz