Brickworks Limited (ASX: BKW) has announced that it has entered into a ‘Deed of Call Option’ over its 62 Belmore Road, Punchbowl, New South Wales property for $41 million.
Brickworks describes itself as one of the nation’s leading providers of building products. It runs Austral Bricks, Austral Masonry, Austral Precast and Bowral Bricks. It also owns 43% of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
The Deed of Call Option gives the buyer the option to purchase the property for $41 million in the first half of the 2019 financial year, which is between July 2018 and December 2018. The 62 Belmore Road property is a nine hectare property.
The potential deal includes a 10 year (and another 10-year option) lease back to Austral Bricks for its two-hectare specialised brick plant.
Brickworks management said that a further update on the sale will be provided at the full year results, which is expected to occur on 20 September 2018.
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