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Scholastic Unlocks Significant Value Through Sale-Leasebacks of Owned Real Estate Assets
- Scholastic announced sale-leaseback deals for its NYC headquarters and Missouri distribution center, aiming to unlock $401 million in net proceeds.
- 555-557 Broadway was sold for $386 million with a 15-year lease and two 10-year extensions; annual rent will rise with other cost changes.
- Jefferson City facility fetched $95 million with a 20-year triple net lease and two 10-year extensions.
- Scholastic expects closing of both transactions by the end of 2025 after customary conditions.
- The moves are intended to strengthen Scholastic's balance sheet and support long-term, profitable growth and shareholder value.
- Scholastic will continue operations at both properties under long-term leases after the sales.
- Newmark Group served as exclusive advisor; Hogan Lovells and Gagnier Communications also advised Scholastic on the deals.
- The proceeds will fund Scholastic's capital allocation priorities, including debt reduction and share repurchases.
- Scholastic emphasized that the monetization preserves long-term use of strategic real estate assets.
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