Luxury and prestige car retailer Autosports Group (ASX:ASG) has exercised an option to acquire the property that houses one of the company’s Mercedes-Benz dealerships in Queensland.
The purchase price for the property was about $11.4 million following two separate valuations, the purchase was 100 per cent debt funded.
The contract to purchase the property was exchanged yesterday with settlement expected to take place in mid May.
The acquisition is expected to strengthen the company’s balance sheet and improve cash flow in the medium to short term.
It’s been a busy year for the company which acquired Sydney’s Canterbury BMW dealership for $15.6 million in February.
Shares in Autosports (ASX:ASG) closed 0.25 per cent higher at $2.00 yesterday.