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FirstGroup sells Greyhound properties for US$137mln

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FirstGroup PLC (LON:FGP) shares moved positively in Thursday’s deals after announcing three major property sales, for total proceeds of GBP102mln (US$137mln), from its Greyhound business in the North America.


The company highlighted that its largest transaction is for what’s described as an “oversized legacy garage and customer terminal” in the downtown arts district of Los Angeles.


That transaction is with Prologis. It is worth US$88mln in cash and the site will still be available to Greyhound via a leaseback agreement covering a two-year period. In the meantime the plan is for Greyhound to move its terminal to a more convenient and attractive location for customers, and, a more appropriately sized garage site.


The other sites are in Denver, Colorado, in a US$37mln sale, and, in Ottawa, Canada, in a US$7mln deal.


Total book value for three sold assets was just US$24mln, at September 30, which according to the company generates a total profit of around US$100mln.


“These transactions are a further step in the group’s rationalisation of the Greyhound property portfolio for value, reducing the operational footprint by moving operations to intermodal transport hubs or new facilities better tailored to customers’ needs,” the company said in a statement.


In London, FirstGroup shares rose by 1p or 1.37% to change hands at 75.02p.

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