- Sale of entire site expected to generate EBIT above $230M from 52 hectares
- Total proceeds is $408 million
- Today's sale is final tranche being sold, 12.4 hectares
Building products company CSR (ASX: CSR) today announced it has sold 12.4 hectares of land at Horsley Park for $124 million. Located within the western Sydney industrial market, the sale comes some nine months after the sale of land in October last year for $84.3 million, also in Horsley Park.
Last year’s sale of land was the third tranche of land in the area, with today’s announcement, the final sale for the company.
This sale is expected to generate property earnings before interest and tax (EBIT) of approximately $62 million and is anticipated to be recorded in the financial year ending 31 March 2025.
The total proceeds from all sales at Horsley Park is $408 million, CSR said the total of completed and contracted transactions, delivered over a six-year period, is expected to generate EBIT in excess of $230 million from the 52-hectare site.
“We have delivered transactions across a number of stages to minimise disruption to our PGH Bricks business which operated at the site until April 2021.” said CSR CEO Julie Coates.
“With contracted transactions now confirmed for all land at Horsley Park, we have secured significant Property earnings to be delivered progressively over the next four years,” CFO and EGM property David Fallu added.
“Our rehabilitation and reconstruction of the former quarry at the Horsley Park site has progressed, with completion of the next stage of land remaining on track to deliver $18 million of EBIT before the end of CSR’s current financial year on 31 March 2022.”