Aspial Corporation A30 has proposed to dispose of its property at 240 Margaret Street, Brisbane, Australia for A$32 million ($29.0 million).
On Feb 27, the group announced that its subsidiary, WCL (Qld) Margaret St Pty Ltd, entered into a put and call option agreement with Kyanite 240 Margaret Landowner Pty Ltd in relation to the proposed sale on Feb 21.
Kyanite 240 Margaret Landowner Pty Ltd is the trustee for Kyanite 240 Margaret Landowning Trust.
Aspial indirectly holds 65% of the equity interest in WCL (Qld) Margaret St. The property was acquired by the latter and held for redevelopment purposes.
The property for sale is freehold and spans an area of 1,715 sqm (18460.11 sq ft). The property includes any transferable site area that may have been attributed to Lot 2 on RP 182958 by the Brisbane City Council, up to a maximum of 217 sqm.
The completion will take place around 10 business days after the date of the signing of the contract upon the exercise of the put or call option.
The net proceeds from the purchase price represents a deficit of approximately $8.7 million over the the book value of the property as at June 30, 2022. It also represents a loss on disposal to the group of $8.7 million. As at June 30, 2022, the property’s book value is $39.1 million.
The seller intends to use the proceeds of the proposed disposal to repay the existing loans on the property. The proceeds will also go towards its general working capital purposes.
Aspial Corporation reported a loss of $14.7 million for the FY2022, down from the $363,000 loss in the FY2021. The deeper loss was attributable to several factors including higher other operating expenses, lower interest, rental and other income, a deeper loss on foreign currency translation and a deeper loss from its share of other comprehensive income of associates.
Shares in Aspial closed flat at 8 cents on Feb 27.
