Steel & Tube Holdings Limited (NZX: STU) has told the market it is marketing its property at Blenheim Road, Christchurch on a sale and leaseback basis through CBRE.
STU chief executive Mark Malpass said yesterday: “We are a customer-focused steel distribution and solutions company, not a commercial property company. A sale and leaseback would release capital, improving the efficiency of our balance sheet, while still reflecting the importance of the property through favourable lease terms.”
Over the last few years, Steel & Tube has been consolidating its property footprint.
This, he said, is an ongoing process as STU looks to capture synergies from recent acquisitions and build on its significant breadth of product offering to customers across New Zealand.
“Its objective is to create a ‘one stop shop’ for customers, allowing them to access the range of Steel & Tube’s products and services in one place.
In Christchurch, Steel & Tube recently undertook two major developments. In December, it opened a brand new coil processing site on Seymour Street. The development was undertaken by the landlord on a long term lease arrangement. The second development is the Blenheim Rd site that has been significantly upgraded and forms a key distribution hub for the South Island.