HS Optimus Holdings has agreed to sell its property at 23-31 Lincoln Square South, Carlton, Melbourne, for A$19.7 million ($16.75 million).
The company’s wholly-owned subsidiary, Ambertree Vic Mel (Lincoln), entered into a contract of sale with a “well-established educational institution” in Melbourne on Dec 19.
The property is a freehold five-storey heritage building located close to Melbourne’s central business district and within walking distance of the University of Melbourne and RMIT University. The building is fully refurbished and is vacant. It occupies a land area of about 906 sqm (9752.1 sq ft) and a building area of 3,745 sqm.
HS Optimus had previously obtained a planning permit for a purpose-built student accommodation (PBSA) for the property. The permit, obtained in partnership with Fathom Group, was granted in October. In its Oct 18 statement, the approval is for 268 PBSA beds with an opportunity to increase to 300, subject to the council’s approval.
According to HS Optimus, the property has been mortgaged to an Australian alternative asset manager as security for a loan facility. The facility will be fully settled following the disposal.
Based on HS Optimus’ 1HFY2026 ended Sept 30, the net carrying amount of the property was around A$13.24 million. Had the disposal been completed on Sept 30, the disposal would have resulted in a profit of A$6.12 million upon disposal, sans expenses.
The property’s fair value, based on an independent valuation conducted on March 31, is A$16 million.
In its Dec 19 filing, HS Optimus says the disposal was in the group’s “best interests” as it will allow it to realise the value of the “long-held investment asset”. The proceeds received will be used to settle the facility. The remaining balance will be used for other investment opportunities and working capital.
On a pro forma basis, if the disposal had been effected on March 31, HS Optimus’ net tangible assets (NTA) per share would have been 0.97 cents from 0.87 cents originally. If the disposal had taken place on April 1, 2024, HS Optimus would have reported an earnings per share (EPS) of 0.03 cents from a loss per share of 0.05 cents.
See also: Acrophyte Hospitality Trust disposing of Hyatt Place Memphis Primacy Parkway for US$7.75 mil
On the same day, HS Optimus Holdings said its subsidiary, HS Optimus Wood Products Sdn Bhd, had been granted a banking facility of RM9 million ($2.9 million) by United Overseas Bank (Malaysia).
The facility will be used to finance purchase of trade related goods and general working capital requirement.
Shares in HS Optimus closed 0.1 cents higher or 33.3% up at 0.4 cents on Dec 19.
