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Australia’s Qantas to sell land for $595 mln to cushion pandemic blow

  • LOGOS Property Group main shopping for consortium
  • Additional land could possibly be bought, elevating deal worth
  • Qantas to use funds to repay debt constructed up throughout pandemic

SYDNEY, Oct 15 (Reuters) – Australia’s Qantas Airways Ltd (QAN.AX) stated on Friday it had agreed an A$802 million ($595 million) deal to sell land close to Sydney Airport to a consortium led by LOGOS Property Group to cut back debt, because the provider recovers from pandemic lows.

Settlement of a lot of the heaps is anticipated within the present half ending Dec. 31, the airline stated in a press release.

“We’ll use these funds to help pay down debt that we’ve built up during the pandemic,” Qantas Chief Executive Alan Joyce stated. “The strength of this sale and its impact on our balance sheet means we can get back to investing in core parts of our business sooner.”

Qantas stated it had additionally entered talks with LOGOS about potential future growth choices for the websites being acquired, together with a devoted precinct for the airline and the sale of extra land close to the heaps being offered.

The airline stated it anticipated to full the analysis of these proposals in early 2022 and if an settlement was reached, it had the potential to increase the overall worth of the deal to greater than A$1 billion.

Pension fund AustralianTremendous stated in a separate assertion that it was a part of the LOGOS-led consortium.

($1 = 1.3486 Australian {dollars})

Reporting by Jamie Freed in Sydney and Savyata Mishra in Bengaluru; Editing by Karishma Singh

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