Ninestar of China to sell off Lexmark facilities
- Lexmark is owned by Ninestar of China, whose revenues have been impacted by charges by the US Department of Homeland Security that it uses slave labor in some plants in China
- Ninestar announced it plans to sell Lexmark’s US headquarters in Lexington, Kentucky and its facilities in Cebu, Philippines
- Total of 1.45 million square feet of office space and 135 acres of land involved in Kentucky
- Selling price of $126.9 million expected
- Will apparently lease the office back for $1.137 million per month with annual rent increase of 3%
- Total of 2 buildings, land and parking involved in Philippines
- Possible selling price of $80 million
- Reason given for selling; “to further expand financing channels and meet business capital needs”
- Ninestar also announced that it expects to post steep losses for the year
- Lexmark revenue projected to be down 11.4%
- EBITDA (earnings before interest, taxes, depreciation and amortization) is expected be down 32.9%