DGL acquires freehold property in Rocklea, Queensland

ASX RELEASE

7 February 2022

DGL acquires freehold property in Rocklea, Queensland

Melbourne, Australia - DGL Group Limited (ASX:DGL) (NZX:DGC), (“DGL” or the “Company”), a specialist chemicals business that manufactures, transports, stores and processes chemicals and hazardous waste, is pleased to announce the acquisition of the industrial property located at 57 Ashover Road, Rocklea, Queensland for a total consideration of $11mil.

Located in the established industrial precinct of Rocklea, the site provides easy access to major arterial networks including the Ipswich Motorway.

The property provides an industrial facility of 5,578 square metres and a total land area of 17,860 square metres. The site is configured to provide two tenancy areas separated by a 3,369 square metre breezeway loading canopy. The northern warehouse is currently leased to RGM Maintenance, who specialise in providing maintenance of truck and trailer units, including contracts for the Australian Department of Defence.

The purchase follows on from DGL’s acquisition of the neighbouring site (25 Ashover Road) in October 2021 and provides an opportunity for DGL to establish a substantial multi-functional facility across both sites with greater synergies and improved traffic flows. The purchase of 57 Ashover Road also allows DGL to consolidate other operations around the Brisbane area.

The acquisition is in accordance with DGL’s broader strategy to own the specialised sites from which it operates to ensure DGL continues to meet the requirements of its existing clients, and to better service existing and new clients in the future.
The purchase will be funded through a mixture of bank debt and cash resources on hand.

Founder and CEO of DGL, Simon Henry, said: “DGL has always had a strong focus on owning its own sites. This allows us to invest for the long term in the capital-intensive infrastructure required for the safe production and management of chemicals. This is not always possible on a leased site.”

- ENDS –

Approved for release by the Board of DGL.

CONTACT

Barbara Furci
DGL Group Limited
+64 9 309 9254 or [email protected]

ABOUT DGL GROUP LIMITED
DGL is a long-established, founder-led, end to end chemicals business that manufactures, transports, stores and manages the processing of chemicals and hazardous waste. The company operates a network of 53 sites, both owned and leased, across Australia and New Zealand. The company has a strong track record of revenue and earnings growth.

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Announcement PDF