Soul Patts divests property trusts interests for $1.89B

• Washington H. Soul Pattinson and Company has agreed to sell certain property trust real estate interests for $1.89 billion.
• The transaction will deliver net proceeds to the company after the repayment of debt and transaction costs.
• The divestment allows the company to reallocate capital towards active opportunities across domestic and international markets.

Washington H. Soul Pattinson and Company (ASX:SOL) agreed to divest certain industrial property trust interests for $1.89 billion.

The transaction follows a previous corporate combination that granted specific rights to the buying entities.

“This transaction provides an opportunity for Soul Patts to reallocate capital towards opportunities,” said Soul Patts CEO and Managing Director Todd Barlow.

The reported $1.89 billion figure represents net proceeds following the repayment of debt and transaction costs.

Following the announcement, the Soul Patts share price was unchanged at $36.93.

The company has maintained a commercial relationship with its joint venture partner since 2005.

A separate manufacturing trust holding a 50.1% interest remains entirely unaffected by this deal.

Soul Patts’ merger with Brickworks (ASX:BKW) provides helpful visual and historical context regarding the structural corporate shifts between the entities leading up to the property trust divestment.