Qantas in Talks to Sell A$500 Million of Terminals
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Qantas in Talks to Sell A$500 Million of Terminals
Bloomberg
Qantas in Talks to Sell A$500 Million of Terminals, Review Says
Aug. 25 (Bloomberg) -- Qantas Airways Ltd. is negotiating the sale of A$500 million ($326 million) of airport terminals in Sydney and Melbourne to fund new investments, the Australian Financial Review reported.
Talks with the airport companies and other parties have begun on ways to sell the properties, freeing up cash and converting the airline's terminal cost to a variable rental, the newspaper said.
While the airport companies would be interested in buying the terminals, spinning off the properties into a listed trust is another option being considered, the newspaper said, without saying where its information came from.
All the airline's property, including the company's Sydney freight terminal and jet base, is being considered for sale, the newspaper said, citing Qantas Chief Financial Officer Peter Gregg. Qantas wants to decide whether to proceed with the terminal sale within the next six months, the newspaper quoted Gregg as saying. access the AFR Web site.
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Qantas in Talks to Sell A$500 Million of Terminals, Review Says
Aug. 25 (Bloomberg) -- Qantas Airways Ltd. is negotiating the sale of A$500 million ($326 million) of airport terminals in Sydney and Melbourne to fund new investments, the Australian Financial Review reported.
Talks with the airport companies and other parties have begun on ways to sell the properties, freeing up cash and converting the airline's terminal cost to a variable rental, the newspaper said.
While the airport companies would be interested in buying the terminals, spinning off the properties into a listed trust is another option being considered, the newspaper said, without saying where its information came from.
All the airline's property, including the company's Sydney freight terminal and jet base, is being considered for sale, the newspaper said, citing Qantas Chief Financial Officer Peter Gregg. Qantas wants to decide whether to proceed with the terminal sale within the next six months, the newspaper quoted Gregg as saying. access the AFR Web site.
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Join Date: Jul 2003
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It would be very interesting if Air New Zealand was to buy the Qantas terminals and lease them back to Qantas. What if Virgin bought them or Singapore Airlines, lets hope for Qantas's sake they make a pretty strong contract or they may see themselves operating out of a tent one day.
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How would ANZ fund such a purchase.........mortgage the North island????
Don't underestimate the abilities of the professionals who negotiate the terms of leses dude!!
Having negotiated the odd commercial lease or two, I can see only benefit for Qantas, or any other Sydney based company selling off their real estate assets at peak of market prices, to investors who believe that they can make profits at the acquisition prices offered.
If the vendor can then then re-invest the capital earned from the sale of under performing real estate at a better rate, say to reduce dept in, or to expand it's core business, then it's a sound investment.
The duration of the fixed term and renewals of any lease negate any concern as to who the owner is, even if it is a competitor were to acquire ownership during the term of the lease.
Here endeth commercial lease 101
Don't underestimate the abilities of the professionals who negotiate the terms of leses dude!!
Having negotiated the odd commercial lease or two, I can see only benefit for Qantas, or any other Sydney based company selling off their real estate assets at peak of market prices, to investors who believe that they can make profits at the acquisition prices offered.
If the vendor can then then re-invest the capital earned from the sale of under performing real estate at a better rate, say to reduce dept in, or to expand it's core business, then it's a sound investment.
The duration of the fixed term and renewals of any lease negate any concern as to who the owner is, even if it is a competitor were to acquire ownership during the term of the lease.
Here endeth commercial lease 101
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Wait a minute - sell Assests for quick profit - directors and CEO's get bonus, staff get nada, shareholders happy. In future years when things are tight - what can the company sell ? Nothing. its sold all the hotels it ever used to own, it leases the majority of its planes.....no terminals left...... OH dear - ******.
If I bought the terminals, I would crank the rent up massively, afterall where-else can QF go for terminal space. I would be counting the dosh all the way to the bank and laughing.
If I bought the terminals, I would crank the rent up massively, afterall where-else can QF go for terminal space. I would be counting the dosh all the way to the bank and laughing.
