Universal Technical Institute (UTI), a division of Universal Technical Institute, Inc., announced today the purchase of the three buildings it fully occupies at its Orlando, Florida, campus, which offers technician training programs in automotive, diesel, motorcycle and marine.
In February 2022, UTI completed the consolidation of its UTI-Orlando and MMI-Orlando campuses into the current location, which includes the three buildings being purchased and subleased space in a fourth building.
The purchase of the buildings, which total 154,300 square feet, as well as the 20 acres of associated land, totaled $26 million and will be funded from cash on hand, which includes funds from the Company’s November 2022 revolving credit facility draw, UTI says. The expected annual adjusted EBITDA benefit is approximately $2 million and after-tax cash savings are approximately $500,000.
“Given the current real estate market dynamics, and with our strong balance sheet and capital position, the opportunity to take ownership of the majority of our second largest campus was strategically and financially attractive,” said UTI Executive Vice President & Chief Financial Officer Troy Anderson. “A core part of our strategy over the last several years has been to rationalize our real estate footprint and identify opportunities like this one, to further optimize our campus footprint and cost structure.”
The campus, which opened in 2004, has over 1,300 students currently and offers the Company’s core automotive and diesel programs, along with the motorcycle and marine technician training programs with Harley-Davidson, BMW, Honda, Yamaha, Suzuki, Mercury Marine and Volvo, according to UTI. The campus also has several auto and diesel Manufacturer Specific Advanced Training (MSAT) programs including Ford, BMW and Daimler Trucks.