Tropical Battery Company has completed a sale-leaseback transaction involving its Ferry Road headquarters, generating gross proceeds of $950 million as part of a broader effort to reduce debt and strengthen its balance sheet.
The company says a significant portion of the funds has been used to pay down higher-cost debt, reducing its annual interest expenses, while the remainder has been allocated to working capital to support inventory purchases and day-to-day operations.
Under the arrangement, Tropical Battery sold the property but will continue to occupy and operate from the location under a long-term lease agreement.
The company says there will be no disruption to its business activities.
Chief Executive Officer Alexander Melville says the transaction unlocked value tied up in a non-liquid asset and allowed the company to redirect capital to areas that can generate stronger returns for shareholders.
Management says the objective is to create a more sustainable balance sheet capable of supporting the group's next phase of growth.
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