See real estate agent listing:...

See real estate agent listing:

https://www.realcommercial.com.au/for-sale/property-18-22-orient-avenue-pinkenba-qld-4008-503823746

Net annual income stated as $225,000, so sold on a 5% yield. At 30 June 2020 PTB was paying 3.24% interest on its bank loans, so selling building to reduce bank loan results in rental expense being greater than the saved interest expense. Admittedly reducing debt creates greater balance sheet flexibility and may reduce funding cost on remaining debt. Longer term, I assume there are business investment opportunities that provide scope for PTB to generate a far higher return than 5%.

Listing info mentions a 10 + 10/year lease compared to ASX announcement stating a 15 year lease with a first right of refusal to release at end of 15 years. Must if been some negotiations taking place to get the deal over the line.