Qantas sells land for $ 802 million to reduce debt

Qantas will use a $ 802 million land sale to reduce debt and may still move its corporate headquarters to the same divested property.

The carrier is selling 14 largely underdeveloped acres in Mascot, Sydney, to help shore up its finances after the COVID-19 slowdown.

A LOGOS Property Group consortium comprising AustralianSuper emerged as a buyer among 18 bids.

Qantas is in discussions with the group about developing the site so that it can be leased for company operations.

Airline boss Alan Joyce said Qantas headquarters, training and distribution centers could be combined to sit next to the airport.

These operations are currently spread across Mascot.

Qantas management will decide next year whether to apply for consideration in a redevelopment.

The real estate consortium is planning a four-level logistics hub.

The airline and the real estate group will also decide whether or not to exchange three additional hectares of land adjacent to the site. This would increase the sale value to $ 1 billion.

A review of Qantas’ ownership this year revealed no need for the airline to develop the land.

Settlement is expected in the first half of the year.

The airline has cut costs and hundreds of employees during the pandemic as demand for travel dwindles.

In August, the company recorded a full-year net loss of $ 1.73 billion. Revenue fell 58.4% to $ 5.93 billion as border closures made flights impractical for most people.

ASX shares rose 1.97% to $ 5.69 at 1534 AEDT.

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