The Dicker Data Ltd (ASX: DDR) share price will be on watch today following a late announcement on Thursday.
What was announced?
After the market close on Thursday the distributor of information technology products announced that it has exchanged contracts for the sale of its property located at 230 Captain Cook Drive, Kurnell.
According to the release, the consideration for the sale is $36 million and the transaction is expected to be fully settled by August 15 2019.
The release explains that the net proceeds from the sale will be applied against debt reduction and go towards partly funding the construction of the new distribution facility.
Dicker Data has also entered into a lease back arrangement to lease the property whilst the construction of the new facility is underway. The lease is for a period of two years with an option to extend it if required. There will be no change to any operational arrangements as part of the property sale.
New distribution facility.
The sale of this property comes hot on the heels of the development application approval for the construction of its new distribution facility up the road at 238 Captain Cook Drive, Kurnell.
The size of the current distribution centre is 15,000 sqm. Once stage one is completed the new property will be almost double at 29,000 sqm, providing 22,000 sqm of warehouse space. This will be an almost 70% increase on the current warehouse space of 13,000 sqm. The office and amenities space will also increase from 2,000 sqm to 7,000 sqm.
The new distribution centre is expected to be completed early 2021.
What else happened?
This wasn't the only thing that Dicker Data announced on Thursday. In the morning the company announced that it has been appointed as a distributor for Nutanix for the Australian and New Zealand markets.
This agreement will see the two parties work together to provide enterprise customers with more simplified and convenient cloud management services and applications.
And then in the afternoon the company responded to an ASX Price Query by advising that it doesn't know why its shares have been incredibly volatile this week. It also confirmed that it expects to report a half year result in line with its guidance later this month.
Thankfully, though, despite its recent wobbles the Dicker Data share price has been one of the best performers on the All Ordinaries this year alongside the likes of Appen Ltd (ASX: APX) and Bubs Australia Ltd (ASX: BUB) with a gain of 130%.
