Debt Relief in Sight as Eden Targets November Close for Georgia Sale
Eden Innovations is set to complete the sale of its Georgia industrial property for US$5 million, aiming to significantly reduce its debt burden. The sale proceeds will primarily repay over US$4 million of the company’s iBorrow loan, easing financing costs.
- Georgia property sale price set at US$5 million (AUD$7.7 million)
- Property originally purchased in 2018 for US$1.2 million
- Sale completion targeted for 3 November 2025
- Proceeds to repay over US$4 million of iBorrow loan
- Non-refundable fees of US$450,000 paid by purchaser
Background on the Georgia Property Sale
Eden Innovations Ltd (ASX – EDE) is advancing towards finalising the sale of its industrial property located at 1475 Doug Barnard Parkway, Augusta, Georgia. Purchased in 2018 for US$1.2 million, the property is now contracted to be sold for US$5 million, representing a substantial gain over the holding period. The targeted completion date is set for 3 November 2025, following a series of negotiated contract variations and extended inspection periods.
Financial Implications and Debt Reduction
The sale proceeds are earmarked primarily to reduce Eden’s outstanding iBorrow loan, which currently stands at US$5.8 million. After deducting estimated commissions and selling expenses, the net funds, expected to exceed US$4 million, will be applied to repay a significant portion of this debt. This repayment is poised to substantially lower Eden’s ongoing financing costs, improving the company’s cash flow and financial flexibility.
Contractual Nuances and Sale Process
The purchaser, JB2 Partners LLC or its nominee, has extended the inspection period eleven times, reflecting thorough due diligence and regulatory considerations. They have also paid non-refundable fees totaling US$450,000, which are credited towards the purchase price. Eden has indicated that the final outstanding permit required to complete the sale is expected imminently, clearing the way for the transaction to close as planned.
Looking Ahead – Broader Asset Sales and Shareholder Updates
While the Georgia property sale marks a significant milestone, Eden Innovations also continues to progress the sale of its Mead Property, signaling a broader strategy to optimise its real estate portfolio and strengthen its balance sheet. The company has committed to keeping shareholders informed on developments as these transactions conclude.
Bottom Line?
Eden’s imminent property sale promises a meaningful debt reduction, but final details and the Mead Property sale remain key watchpoints.
Questions in the middle?
- Will the final permit be secured on schedule to meet the 3 November completion?
- How will the repayment impact Eden’s overall financial health and future borrowing costs?
- What progress and timing can investors expect regarding the Mead Property sale?