AUSTRALIAN Wine Holdings has sold its Karridale vineyard on a sale and leaseback basis to Everbroad Pty Ltd for $2.7 million.
AWH is entering into a four-year lease on land with an option to extend for a further two years for an annual lease fee equal to 7 per cent of the purchase price, or $189,000.
The funds from the sale will be used to reduce bank debt levels, thereby maintaining the secured position of the company’s current and proposed convertible notes holders.
AWH was preparing for the launch of a prospectus for a pro-rata, non-renounceable entitlements issue of convertible notes as WA Business News went to press.