UHAL: AMERCO planning to buy $62 million dollars worth of real estate
By Ian Gilson, PhD, CFA
NASDAQ:UHAL
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AMERCO (UHAL) is planning to buy 12 Kmart locations, one Sears site and six unexpired non-residential real property leases for a total value of $62 million. Some of the stores have been closed (three) and some are operating but are not profitable (6). The buyer will be AMERCO's Real Estate Division.
These purchases are in line with other recent buys of existing businesses that have closed. The advantages of buying such properties are existing zoning is commercial, the infrastructure is complete, the properties are usually in locations with good traffic flow, that parking is plentiful and conversion into U-Haul self-storage and truck rental facilities is quick and relatively low cost when compared to a greenfield lot.
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