Allco sells Singapore stake
David Clarke
Allco Finance Group has succeeded in improving its debt position with the sale today of part of its Singaporean real estate arm for around $138 million.
The company announced to the Australian Securities Exchange that it had made the sale to Fraser Centrepoint and that the sale comprised of Allco’s 17.7 per cent interest in the Allco Commercial Real Estate Investment Trust (REIT) and its 100 per cent interest in the manager of the Allco REIT.
It said that Allco Singapore would generate proceeds in excess of $90 million after repaying loans associated with the investment.
It said the proceeds would be used to further reduce Allco’s senior debt as well as providing Allco with further operating liquidity.
Commenting on the transaction, Allco managing director and chief executive David Clarke described it as an excellent result for the business.
He said the sale delivered a good profit result for Allco and released a significant amount of cash, which would be directed towards lowering group debt and providing additional operating cash to support the company’s core business activities.
AUTHOR
Mike Taylor
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