The Qantas Group has entered into binding agreements with a consortium led by LOGOS Property Group for the sale of 13.8 hectares of land in Mascot for AU$802 million. Settlement of the vast majority of the lots is expected in the first half of this financial year, with the funds to be used to reduce debt and accelerate the airline's recovery. The transaction remains subject to certain conditions being met and further details on the expected financial benefit of the sale will be provided with the Qantas Group's financial results in February 2022.
The national carrier has also entered into discussions with LOGOS about potential future development options for the sites they are acquiring, including creation of a dedicated precinct for the airline, as well as the sale of an additional three hectares of land that adjoins some of the lots being sold. Qantas expects to complete the evaluation of these proposals in early 2022, and if an agreement is reached, this has the potential to raise the total value of the deal to more than AU$1 billion.
The sale of the largely underdeveloped land follows a three-month expression of interest process, which resulted in 18 bids from a range of Australian and international syndicates. A review of the Qantas Group's national property footprint earlier this year made clear there is no long-term need for Qantas to develop the land, which is largely surplus to its operations.
