Star Equity Holdings Announces $5.9M Sale-Leaseback Transaction For Its South Paris, Maine Facility
Portfolio Pulse from Benzinga Newsdesk
Star Equity Holdings, Inc. (NASDAQ: STRR) has announced a sale-leaseback transaction for its South Paris, Maine facility for $5.935 million. The facility will be leased back to KBS Builders, Inc., a wholly owned subsidiary of Star, for 20 years with an option to extend. The transaction is expected to close in Q1 2024 and is aimed at unlocking value for Star, allowing the company to reinvest in EBITDA-generating assets and acquisitions. The transaction will not affect KBS's operations.
January 25, 2024 | 1:13 pm
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Star Equity Holdings enters a sale-leaseback deal for $5.9M, planning to use the proceeds to fund growth and acquisitions. The deal is expected to close in Q1 2024 and will not disrupt current operations.
The sale-leaseback transaction is a positive financial move for Star Equity Holdings, indicating a proactive approach to asset management and growth funding. The deal is expected to provide capital for the company's growth strategy without affecting its subsidiary's operations, which could be viewed favorably by investors. However, the actual impact on the stock will depend on market conditions and the company's execution of its growth strategy.
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