- Velocity Property Group (VP7) has sold its development site, Two27 in Palm Beach, Queensland, for $11.15 million
- The settlement is expected to occur in December this year
- The company is expecting to use the funds to pay off debt
- Two27 was supposed to be one of the first of a series of developments but due to COVID-19, Velocity will now be focusing on selling its completed property
- Velocity will release its full-year results on August 25 and is expecting to report a full-year loss of $10 million
- This represents a combination of an operating loss, write down of investment properties and of costs previously capitalised on development assets
- Company shares are suspended and last traded for 50 cents each
Velocity Property Group (VP7) has sold its development site, Two27 in Palm Beach, Queensland, for $11.15 million.
The undisclosed purchaser has already paid $600,000 deposit with the remaining $500,000 of the deposit due in mid-October. Settlement is expected to occur in December 2020.
Velocity is expecting total net proceeds of the sale to be around $4.6 million and will be used to pay the debt reduction of 360 Capital REIT’s (TOT) corporate loan note.
Two27 was supposed to be one of the first of a series of developments, however, a review was taken due to COVID-19 and the company decide to sell the land.
Instead, Velocity will be focusing on the sale of completed projects at its Burleigh Heads site.
Additionally, there are three more unconditional sale contracts issued by Velocity for a gross value of around $4.9 million. These are expected to be settled in August this year.
After the sales, the company is expected to have reduced its debt position by around $15.4 million.
Velocity will release its full-year results on August 25 and is expecting to report a full-year loss of $10 million. This represents a combination of an operating loss, write down of investment properties and write down of costs previously capitalised on development assets.
Company shares are suspended and last traded for 50 cents each.