$274m sale a debt gold mine

$274m sale a debt gold mine

MULTIPLEX Group plans to use the $274 million from its sale of Goldfields House in Sydney to Valad Property Group yesterday to cut its debt.

Director of investor relations Peter Murphy said the proceeds will be used to ease the company’s senior debt and fund its Property Trust commercial mortgage backed securities (CMBS) program.

Mr Murphy said the sale price was about $11,300 per sq m of net letable area, exceeding management’s expectations.

“This reflects the strength and competitive dynamics of the investment market for Australian CBD properties.”

Multiplex said profit from the sale will be recognised in the 2006 financial year.

The deal is expected to lift 2006 second half distribution to 17.5c per unit from 14.25c.

“The trust and portfolio are going extremely well at the moment and we’re very pleased with the way it has been performing for the last 18 months to two years,” Mr Murphy said.

“It still has a very long lease duration and a strong bias towards the strong markets of NSW and Victoria.”
Source:
dailytelegraph.news.com.au

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