Qantas strengthens balance sheet with sale of surplus Mascot land

  • Sale of land to generate gross proceeds of $ 802 million.
  • Accelerate progress towards reaching the target range for net debt by the end of FY22.
  • Additional proposals for the sale and development of land by LOGOS under study.
  • The Qantas Group has entered into binding agreements with a consortium led by LOGOS Property Group to sell 13.8 hectares of land to Mascot for $ 802 million.

    The vast majority of the lots are expected to be settled in the first half of this fiscal year, with the funds to be used to reduce debt and accelerate the airline’s recovery.

    The transaction remains subject to certain conditions and further details of the expected financial benefit of the sale will be provided with the Qantas Group financial results in February 2022.

    The national carrier has also entered into discussions with LOGOS on potential future development options for the sites they acquire, including the creation of a dedicated compound for the airline, as well as the sale of an additional 3 hectares of land which adjoin some of the lots. to be sold.

    Qantas plans to complete the assessment of these proposals in early 2022, and if a deal is struck, that could bring the total value of the deal to over $ 1 billion.

    The sale of the largely underdeveloped land follows a three-month expression of interest process, which resulted in 18 offers from a range of Australian and international unions.

    A review of the Qantas Group’s national land footprint earlier this year clearly showed that Qantas did not need to develop the land in the long term, which is largely surplus for its operations.

    Qantas will lease portions of the land for a period of time while arrangements are made to relocate some of the functions for which the land is currently used and as LOGOS advances its broader development plans.


    “We entered this process with an open mind as to whether we would sell some, all or none of this land depending on the market response. This response was extremely strong and resulted in the sale of all the land.

    “We will use these funds to help pay off the debt we accumulated during the pandemic. The strength of this sale and its impact on our balance sheet allow us to start investing again in key elements of our business earlier.

    “The prolonged closures and border closures of the past few months have been extremely difficult, but this transaction adds to the growing momentum around our recovery.

    “The date for restarting international travel has been brought forward and the thresholds for opening internal borders in most states should be reached within the next two months. We know there is a lot of pent-up demand that we are ready to capitalize on, with some strong signs already.

    “LOGOS has made a number of proposals on how we might unlock more value from our land holdings in Mascot, which we will now explore in detail.

    “Beyond the agreement we are announcing today, it is possible for us to work with LOGOS on the creation of a Qantas neighborhood as part of their site redevelopment plans. He could see a new headquarters combined with a relocated training center and distribution center, right next to the airport, rather than being spread across different parts of Mascot as they are now.

    “It would take several years to deliver, but it is something that we are actively considering given that we are leasing our current head office. It should improve the efficiency of our operations and make a significant contribution to reducing our emissions footprint through its design. “

    / Public distribution. This material is from the original organization / authors and may be ad hoc in nature, edited for clarity, style and length. The views and opinions expressed are those of the author (s). See it in full here.

    Source link

    Leave A Reply

    Your email address will not be published.