NEW YORK (Aug. 26, 2002) — Michelin North America Inc. has sold three of its warehouses—two in the U.S. and one in Canada—for nearly $50 million to a real estate investment trust as part of its plan to outsource distribution.
Michelin disclosed in early August it was going to outsource its distribution in the U.S. and Canada, signing a six-year, multi-million dollar agreement with TNT Logistics North America.
In mid-August Michelin sold its distribution centers in Laurens, S.C., Temperence, Mich., and St. Albert, Alberta, to units of Lexington Corporate Properties Trust, a New York-based real estate investment trust. Lexington then signed multi-year lease arrangements with TNT Logistics.
Lexington, through a joint venture with an unnamed institutional investor, paid $45.9 million for the Laurens and Temperence facilities, which combined occupy 1.91 million square feet with room to expand at both sites.
In Canada, Lexington Realty Advisers Inc. bought the 9-year-old, 123,000-sq.ft. warehouse in St. Albert for $2.9 million, and is now leasing it to TNT.
Starting in early August, TNT took over operation of Michelin's 18 tire distribution centers in the U.S. and Canada—occupying a total of 7 million square feet of space.