This is not an unqualified good.
A manufacturer needs land and buildings to operate from. If owned, it has a dull asset on the balance sheet that can be borrowed against; if leased, it has a long term liability and certain cash outflow. Which is more attractive?
The Richlands Qld facility sale is ahead of a move to better premises. The Takanini NZ sale includes a 12 year lease back, so MXI is staying put.
Still, with a 5.3% gross yield (who pays outgoings, rent rises not revealed) MXI has cut a reasonable deal for an industrial property.
IMXI may simply be lining up its ducks ahead of the refinance of its $60m debt. $16m off that, even with an unused M&A tranche available, makes refinancing a lot easier and cheaper.
I suspect MXI is considering other merger opportunities, most likely in the truck parts sector as it builds out its national network.
Ash
This is not an unqualified good.A manufacturer needs land and...
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