Australia's Abacus to sell non-core commercial assets for $71 mln

Abacus

23/01/2024 06:34

Jan 23 (Reuters) - Australia's Abacus Group  ABG.AX  on Tuesday said it
is selling two non-core commercial assets in New South Wales at a discounted
valuation of about A$107 million ($70.62 million).
        The real estate investment firm will sell the Sydney-based assets
including an office space to a private investor and a remaining 50% stake in
Ashfield Mall to property investment firm Mintus Pty Ltd.
        It is selling the assets at a 4.5% discount to their combined June 2023
valuation, the firm said.
  
    The Australian real estate market has been battling with lower demand and
higher interest rates, driving firms such as Dexus  DXS.AX  to sell an office
building in downtown Sydney at a 16% discount last year.
        Abacus is open to further disposal of assets, Group Managing Director
Steven Sewell said in a statement.
  
    The company said that the proceeds from the divestment will be used to
reduce debt, with proforma gearing - the ratio of its debt to capital - expected
to reduce by 1.4%.
    
     

($1 = 1.5152 Australian dollars)

 (Reporting by Sneha Kumar in Bengaluru; Editing by Sonia Cheema)
 ((Sneha.Kumar@thomsonreuters.com;))