News: PPK Group banks $12.24 million from property sale

PPK Group (ASX:PPK) has sold its Arndell Park site for $12.24 million, a significant amount given its market capitalisation of under $50 million.

Proceeds from the sale will be used to fund further mining services focused acquisitions, reduce debt and associated capital management strategies.

PPK invests in industrial properties, land and mining services equipment. The company also controls a subsidiary which provides finance.

In April, PPK made the final payment of $3 million for acquisition of the COALTRAM mining equipment business.

COALTRAM's business operations include the manufacture, service and support of the trademark COALTRAM underground transport utility vehicle and equipment hire. 

There are currently 99 COALTRAM vehicles in service in Australia with a wide range of clients including BHP, Centennial Coal and Glencore with framework agreements in place for the provision of new products, servicing and parts supply.

PPK's medium term rotation strategy is to move away from industrial property holdings in New South Wales and Victoria and towards a greater level of assets held in the wider mining services sector.