NAMPAK has concluded a sale and leaseback transaction of 15 group properties announced in June including the outright sale of one property to Imbali Props 21, a company in the Collins Property Group.Payment of R1.744bn has been received in full by Nampak. The packaging company will lease the properties for 15 years, with an option to renew the leases for a further 10 years. This includes an option to repurchase the properties at market-related prices on termination of the leases."Rentals payable are equivalent to the current rental paid by Nampak’s divisions to Nampak’s property division," Nampak CEO André de Ruyter said.The competitiveness of Nampak’s operating divisions would therefore not be affected by the deal, which was earnings positive for the group.The deal was in line with Nampak’s strategy to deleverage its balance sheet, strengthen its debt covenant positions and create the capacity for future growth."The transaction has significantly improved the group’s gearing ratio t...
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