CTNA Sells, Leases Back Headquarters Site

The sprawling Continental Tire North America headquarters site in Charlotte, North Carolina will soon be re-born as a business complex following its sale to a developer. Philadelphia based Patriot Equities, a company specialising in the purchasing and leasing back of corporate buildings, has agreed to acquire the tyre manufacturer’s offices and former factory for US$29.4 million.

CTNA has taken out a ten-year lease on a portion of the site, and will continue its tenancy there in a reduced capacity. Of the 1.7 million square feet of commercial space contained in the site, the company will now lease and occupy 600,000 square feet.

During the month of January 2008 CTNA made the significant disclosure that its North American operations, in the red for several years, seem likely to have broken even in 2007. It is not clear if, or to what extent, the proceeds from the headquarters sale have contributed towards this return to the black.