September 30, 2014, Mississauga, Ont. – Strongco Corporation
announced today that it has completed the sale and 15-year leaseback of its
Mississauga location, which houses its main Volvo branch in Ontario, as well as
central services and corporate office, for the purchase price of $17.25
million.
September 30, 2014, Mississauga, Ont. – Strongco Corporation
announced today that it has completed the sale and 15-year leaseback of its
Mississauga location, which houses its main Volvo branch in Ontario, as well as
central services and corporate office, for the purchase price of $17.25
million.
As previously announced, Strongco plans to monetize several
of its real estate holdings through sale and leaseback transactions, with
proceeds to be redeployed to reduce debt. In addition to the Mississauga
location, Strongco has now completed the sales of the recently constructed
branches in Fort McMurrray, Alberta and Saint Augustin-de-Desmaures, Quebec.
The sale of branches in Val D'Or, Quebec and Moncton, New Brunswick are
expected to close in the fourth quarter. The gross proceeds from the
transactions are expected to be approximately $47 million.
"It has always been our strategic intent to not tie up
capital in real estate assets over the long term, and, given the substantial
increase in property values within these regions, we believe it is an opportune
time to sell and lease back these properties and use the proceeds more
effectively within the business operations," said Bob Dryburgh, President
and Chief Executive Officer. "These sale and leasebacks support our
strategy to continually strengthen Strongco's balance sheet and deploy capital
more efficiently."
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