WENTWORTH has sold five of its Management Letting Rights for $13 million.
Wentworth’s chairman Colin Cowden said the proceeds from the sale of the MLR will be applied to the group’s borrowings and the group will be debt free once the total sale process has been completed.
The group will realise a loss of approximately 15% of the value of the Management Letting Rights currently in the books of the company.
Cowden said the loss is due to short duration of ownership that incurred stamp duty, procurement fees and legal costs as well as the associated selling costs.
The MLR currently have a value in the books of the group of $42 million.
The group is currently in negotiations with a number of parties regarding the remaining twelve management rights operations.
“The sales process is now progressing and it was encouraging to have five of the Management Letting Rights under contract. We anticipate that more MLR will be sold over the ensuing months and we will keep the market informed of any progress,” he concluded.
Australian Property Journal
