CVC Secures $23.7M Profit from Laverton Property Sale
CVC Limited has finalized the unconditional sale of its Laverton property through a joint venture, forecasting a significant profit and strong cash inflow for FY 2026.
- Unconditional sale of Laverton property via joint venture
- Sale price aligns with prior asset value guidance
- 15% deposit paid, $20.2 million retained for post-settlement obligations
- Settlement expected around 6 March 2026
- Forecasted tax profit of approximately $23.7 million in FY 2026
Sale Finalized on Laverton Property
CVC Limited has announced the unconditional sale of its Laverton property located at 65 Leakes Road, Laverton, through its joint venture Nobelium Laverton Land Pty Ltd. The transaction, which has been in contract since December 2024, is set to settle on or about 6 March 2026. This sale marks a significant milestone for CVC, reflecting a strategic move to crystallize value from its property portfolio.
Financial Terms and Implications
The sale price is broadly in line with previous guidance provided by CVC, ensuring consistency with investor expectations. A 15% deposit has already been paid and is held in trust pending settlement. Additionally, approximately $20.2 million will be retained by the purchaser post-settlement to cover commitments related to cultural heritage approvals, pre-lease obligations, rental guarantees, and ongoing warranties. These retained funds underscore the complexity and ongoing responsibilities tied to the property.
Profit and Cash Flow Impact
Upon settlement, CVC forecasts recognising a tax profit of around $23.7 million in the 2026 financial year, subject to final adjustments and costs incurred up to the settlement date. This profit not only enhances CVC’s accounting results but also delivers a meaningful cash inflow. The additional liquidity is expected to provide the company with greater flexibility to pursue further value-adding initiatives for shareholders.
Strategic Outlook
This transaction highlights CVC’s ongoing strategy to optimise its asset base through selective divestments while managing post-sale obligations prudently. The retention of funds for cultural heritage and pre-lease commitments reflects a careful approach to risk management and regulatory compliance. Investors will be watching closely to see how CVC deploys the proceeds from this sale and whether it signals further portfolio rationalisation or reinvestment opportunities.
Bottom Line?
CVC’s Laverton sale delivers a strong profit boost, setting the stage for strategic reinvestment.
Questions in the middle?
- How will CVC allocate the cash inflow from the Laverton sale?
- What are the potential risks tied to the retained funds for cultural heritage and pre-lease commitments?
- Could this sale signal a broader shift in CVC’s property portfolio strategy?
