In a statement to the ASX, Fisher & Paykel Appliances has announced it has come to a conditional agreement for the sale and lease back of its head office and manufacturing facility at East Tamaki, Auckland.

The release provided by the Australian Securities Exchange has outlined that a conditional agreement has been made with Direct Property Fund.

The sale and lease back of the location, which covers 14.4 hectares and over 62,000 sqm of office and manufacturing facilities, is part of Fisher & Paykel’s planned Global Manufacturing Strategy.

CEO and managing director of Fisher & Paykel, John Bongard, commented on the new agreement.

“We are delighted to be able to reach an agreement suitable to both parties, subject to due diligence and finance,” he said.

“This is our largest property sale, so to be at this stage of the sale process is encouraging for our planned debt reduction programme.”

Greg Reidy, managing director, Direct Property Fund Limited, was enthusiastic about the deal.

“We see this as an attractive long term investment for our shareholders, with an iconic New Zealand company as tenant,” he said.

The agreement is conditional until August 2009. Fisher & Paykel continues to market its Cleveland, Brisbane site.