Matrix Composites & Engineering Limited (ASX:MCE) is pleased to announce that leading Australasian Property Investments Limited (“APIL”) has exercised its option to acquire Matrix’s buildings and leasehold improvement assets for $20 million.
In exercising of the option APIL has paid Matrix a $900,000 deposit with settlement to take place by 28 December 2019. In the settlement 90% of the proceeds will be paid, with the final 10% being paid by April 2020.
The Australian Property will sub-lease the land, buildings and leasehold improvement assets for twenty-year, with options for the company to extend the tenancy arrangements for a further term of fifteen years.
The transaction will help the Matrix to take advantage of new orders and growth opportunities in the emerging Oil & Gas market and take advantage of the company’s diversification strategy.