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RCR Tomlinson's workshop in Welshpool was the only WA asset included in the property sell-off.

RCR reaps $37.5m from properties sale

Engineering services company RCR Tomlinson has announced it will sell and lease-back four properties for $37.5 million, with the proceeds to be used to pay down debt.

It follows the company’s announcement earlier this month that it would buy-back up to 2 million shares on market as part of a new capital management strategy.

Half of the sale proceeds will be used towards paying down long-term debt, following last year's acquisition of RCR’s infrastructure business, the company said.

Managing director Paul Dalgleish said proceeds would also allow pursuit of acquisition growth opportunities.

One of the four properties is located in Western Australia, with the company’s Welshpool mining operation on Planet Street sold to Charter Hall.

That lease will be for a 12-year period, with an option to extend for a further six.

RCR follows the lead of chicken producer Ingham Enterprises and Woolworths subsidiary ALH Group, both of which undertook similar lease-back strategies earlier this year.

RCR was down 1.8 per cent to $1.91 at the time of writing.

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Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 31/01/18

1 year TSR5 year TSR
170thMonadelphous76%-1%
242ndRCR Tomlinson40%16%
355thAustal17%23%
389thNavitas10%3%
613thSeven West Media-26%-17%
709 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

13/11/17
$10.1m Sold
21/09/17
$15k Bought
21/09/17
$15k Bought
Total value as at the date of the transaction
Source: Morningstar

Revenue

4th-Seven West Media$1,679.0m
5th↑Austal$1,325.3m
6th↑RCR Tomlinson$1,294.6m
7th↓Monadelphous$1,252.1m
8th-Navitas$967.8m
234 listed industrial companies ranked by revenue.
Source: Morningstar

Remuneration from RCR Tomlinson

278thGraham Salter$443k
632ndRoderick JM Brown$218k
593rdEva Skira$133k
Ranked by total remuneration from all listed WA companies

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