- Divestment of six properties across VIC and QLD
- Premium to book value is 24.2%
- Total is $72.86M
Australia’s largest ASX listed publicans, ALE Property Group (ASX: LEP) has divested six properties from its portfolio.
The non-core assets are spread across Queensland and Victoria, worth a total of $72.86 million.
Guy Farrands, ALE Managing Director, said the pubs were deemed not a core asset ” following the receipt of the rental determinations late last year.”
“They are all leased to ALH, Australia’s largest hotel operator, on long-term triple-net leases with annual CPI reviews and renewal options.”
Guy Farrands, ALE Managing Director
“It has been some time since ALE has sold a property subject to this lease and we are pleased with how the market has received these assets.”
The company said “Net proceeds of the sales are estimated at $71 million and will initially be used to reduce net debt. On settlement, ALE’s gearing is expected to decrease to approximately 35%.”
Earlier in the year, the company said in its half-yearly results that the portfolio was assessed by valuers as 33% under-rented, and property valuations had increased by 4.4%.
Gearing at the time of the half-yearly announcement was being decreased to 39.7%; following this news that the gearing will be reduced further, the total reduction in gearing will be 6.1% (Juen 2020 gearing was 41.1%).