Total
0
Shares
Axiom signs long-term lease with South Australian Government
  • Axiom Properties (AXI) has found a buyer for its newly built South Australian Emergency Services State Command Centre and adjacent multi‐deck car park
  • Charter Hall Social Infrastructure REIT (CQE) has agreed to buy the command centre and car park for $80 million
  • As part of the deal, Charter Hall agreed to buy the assets via the upfront purchase of the land, plus works completed to date and most future works
  • But Axiom will still deliver the overall project, which is due for completion in October 2021
  • The settlement between AXI and CQE is expected to occur later this month, following completion of customary conditions
  • Axiom Properties' share price soared over 78 per cent following the announcement, hitting a high of 10.5 cents
  • Currently, the real estate stock is trading for 8.4 cents each — up 42.4 per cent
  • Meanwhile, CQE fell a slight 0.82 to trade for $3.04

Axiom Properties (AXI) has found a buyer for its custom-built South Australian Emergency Services State Command Centre and adjacent multi‐deck car park which is currently under construction.

The building group has reached an agreement with Charter Hall Social Infrastructure REIT (CQE) to sell the two Keswick properties for a total consideration of $80 million.

Under the deal, Charter Hall has agreed to acquire the assets through an upfront purchase of the land plus works completed to date, for an initial $23 million.

Axiom will use part of that sum to repay the existing NAB construction facility, which is estimated to land around $5 million.

CQE has also agreed to fund the balance of the ongoing works on a progressive basis for $80 million. However, Axiom will be the one to deliver the facility, with completion expected to occur in October 2021.

Both parties expect the deal to be settled by the end of this month, following completion of customary conditions under the agreements. Axiom will also walk away from the sale retaining the development rights over the remaining surplus land.

Commenting on the Command Centre build, Axiom General Manager Paul Rouvray said it will be a world-class facility once it's complete.

"When finished, this facility will provide South Australia with a world‐class Command Centre, providing the operational tools and workspaces for staff which are essential in continuing to keep South Australian communities safe," he said.

Meanwhile, Charter Hall Group Managing Director and CEO David Harrison said he was thankful for their ongoing relationship with Axiom.

"This transaction was negotiated off‐market as a result of Charter Hall’s long-standing relationship with Axiom," David said.

"We continue to see good opportunities to partner with government and enterprise in South Australia, continuing our long involvement in the state," he added.

Following the sale announcement, Axiom Properties share price soared over 78 per cent this morning — hitting a high of 10.5 cents.

Currently, the real estate stock is trading for 8.4 cents each, up 42.4 per cent. Meanwhile, CQE fell a slight 0.82 to trade for $3.04 at 12:02 pm AEDT.


Subscribe


AXI by the numbers
More From The Market Herald
Ultima United (ASX:UUL) pushes ahead with $20M capital raise

" Ultima United (ASX:UUL) pushes ahead with $20M capital raise

Property developer Ultima United (UUL) has released a market update announcing it will push ahead with plans to raise more than $20 million
The Market Herald Video

" Ultima United (ASX:UUL) signs LOI to acquire new development projects in Japan

Ultima United (UUL) has signed a letter of intent with Infinity Capital Group Japan Development to purchase three lots of land in Japan.
Site Group (ASX:SIT) enters $15M funding arrangement with Lucerne Investment

" Ultima United (ASX:UUL) enters trading halt

Property developer Ultima United (UUL) placed its shares in a trading halt pending a capital raise announcement and a new development acquisition.