The company has secured a long-term rental of their Hattingen property and ended the sale process.
As part of the ongoing reorganisation at Turbon AG the company announced in their 2019 financials that the property would be sold. On the 4 May Turbon announced that the sale process had stopped as they had reached a long-term rental agreement for the whole property.
In its announcement Turbon AG said: “In the course of last week, however, we ended the sales process without divestment and decided to keep the property 100% in the Turbon Group”, adding that the “reason for this the decision is the full letting of the property, which was achieved in parallel with the sales negotiations by gaining a main tenant for a 5-year period.”
As a result of the decision the total of €8 million ($8.68 million) reported as of 31 December 2019 will be moved from “for sale planned assets” to “property, plant and equipment”. Turbon added that the same applies to the long-term real estate loan shown at the end of 31 December 2019 in the consolidated balance sheet of €3.9 million ($4.23 million).
Turban AG added: “The decision not to sell the property is based in particular on the inflow of liquid funds to Turbon that can be achieved through leasing the building from the beginning of 2021 at the latest and the possible financing of the holding activity. We had stated in the annual report that the financing of the holding company from the current company structure is a challenge. The full rental of the property provides one important contribution to meeting this challenge.”
