Woolworths clinches R1.4bn property sale to help pay off Australia business debt

Woolworths has finalised the sale of its Bourke Street menswear store in Australia. The proceeds from the R1.4 billion transaction will go towards the repayment of debt facilities.

In a shareholder notice issued on Monday, shortly after markets closed, Woolworths said the disposal proceeds are due to be received in early August.

"The disposal price for the asset was AU$121 million (or R1.4 billion at current exchange rates), which is a favourable outcome," the notice read.

The disposal of the property is part of the group's review of its capital structure of its Australasian entities – which include the reduction of borrowings, it said.

The transaction was first announced in May, and at the time said the sale price achieved is "in line with expectations".

Last week Woolworths issued a trading update, indicating that its clothing divisions performed poorly with sales shrinking at Country Road, David Jones and Woolworths Fashion and Beauty, as a result of the Covid-19 lockdown, Fin24 previously reported.

Woolworths Food was the only division that managed to grow sales over the 52-week period.

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