Written on the 24 April 2014

WATPAC Limited (ASX:WTP) has finalised all conditions to complete the sale of its Waterloo development site to Metro Property Development, for $40 million.

The 10,650sqm land parcel in Newstead is located next to the mixed-use Waterloo Junction precinct on Stratton Street.
CEO Martin Monro says the transaction price won’t impact the asset, with sale proceeds going towards new investments.

“This transaction represents book value and is consistent with the group’s strategy to divest its portfolio of property assets to further strengthen Watpac’s financial position.

“At both a strategic and operational level, Watpac remains focused on utilising capital to maximum benefit and positioning Watpac’s core operations to deliver long-term, sustainable value to shareholders,” he says.

The development company also finalised the sale of its Fisherman’s Wharf Marina site in Hervey Bay for $3.3 million earlier this month.

Monro says the property sales strategy will be pushed through to FY15 to boost equity capital.

“Property sales and better earnings have strengthened Watpac’s balance sheet and our work in hand is approaching $1.9 billion, so we are pleased with how the year is unfolding.”

The strategy includes securing construction contracts for Southpoint commercial tower in Southbank for $114 million and Sydney’s Nuclear Medicine facility for $83 million.

“There are strong signs that the East Coast construction sector will continue to improve during the course of 2014 and we are well placed to win further work in all regions that we operate.”

The Waterloo funds should be received by June 2016, on an agreed staged basis. 






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