- Property developer Ultima United (UUL) has commenced its master lease agreement with Rhinox Property Management - a subsidiary of Rhinox Steel
- The lease is for the Cannington Property located at 3 Oak Street Cannington, Perth
- Rhinox will pay Ultima $7800 a week for the property
- The agreement also states Ultima will receive 20 weeks' worth of rental payments in advance, which in total equals $156,000
- On market this morning, Ultima is steady and is trading for 41.5 cents
Property developer Ultima United (UUL) has commenced its master lease agreement with Rhinox Property Management - a subsidiary of Rhinox Steel.
The lease is for the Cannington Property located at 3 Oak Street, Cannington, Perth.
Rhinox will pay $7800 a week to Ultima for the property. Under the agreement, Ultima will receive 20 weeks' rental payments in advance, which in total equals $156,000.
"The master lease agreement does not represent a change in the company's intentions to continue with the sales efforts of the Cannington units," Ultima told the market on Wednesday.
The board believes this agreement is at the company's best interest as it will increase the marketability of the units by being able to be sold to investors as high-yield leased apartments. Additionally, the agreement will maximise the current value of the apartments by raising its rental yields.
Earlier this month, Ultima announced its plans of raising $2.93 million through a share placement.
Under this raise, Executive Chairman and Managing Director, Jonathan Cheng, has also committed to subscribe for an additional $583,582 worth of shares.
The company will use this month to develop its Bentley National Disability Insurance Scheme project, with aims to complete the project by the fourth quarter of 2021.
Funds will also go towards pursuing opportunties in Australia and Asian property markets, as well as general working capital purposes.
On market this morning, Ultima is trading steady for 41.5 cents at 10:26 am AEDT.