CTI Logistics sells warehouse for $26m

Trucking company CTI Logistics has entered a sale and leaseback deal for its Bibra Lake warehouse facility, with Investec Australia Property Fund paying $26 million for the site.

The deal represents a yield of 7.94 per cent, with CTI Logistics leasing back the site for a 12-year term.

Proceeds from the deal will be used to pay down debts, CTI said in a statement to the Australian Securities Exchange.

“As a result of the sale, CTI has retained sufficient balance sheet flexibility to make further acquisitions and will continue to look for opportunities to reduce debt through the sale of selective mature property assets from the company’s extensive and long-standing property portfolio,” the company said.