RCR reaps $37.5m from properties sale

Engineering services company RCR Tomlinson has announced it will sell and lease-back four properties for $37.5 million, with the proceeds to be used to pay down debt.

It follows the company’s announcement earlier this month that it would buy-back up to 2 million shares on market as part of a new capital management strategy.

Half of the sale proceeds will be used towards paying down long-term debt, following last year's acquisition of RCR’s infrastructure business, the company said.

Managing director Paul Dalgleish said proceeds would also allow pursuit of acquisition growth opportunities.

One of the four properties is located in Western Australia, with the company’s Welshpool mining operation on Planet Street sold to Charter Hall.

That lease will be for a 12-year period, with an option to extend for a further six.

RCR follows the lead of chicken producer Ingham Enterprises and Woolworths subsidiary ALH Group, both of which undertook similar lease-back strategies earlier this year.

RCR was down 1.8 per cent to $1.91 at the time of writing.