Raffles Education to sell Australia property for A$80 million

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Raffles Education’s wholly owned subsidiary Raffles Assets Australia has entered a deal to sell a Sydney, Australia, property to Wentruth for A$80 million, or around S$74.74 million, the for-profit education company said Thursday.

The deal represents “a very substantial gain” as the property was purchased for A$29 million in 2014, Raffles Education said in a filing to SGX.

“The proposed disposal will enable the company to realize cash, unlock the value in the company’s investment and strengthen the company’s financial position,” the filing said. The proceeds will be used to finance the company’s debt repayments and for working capital, it added.

The property is a six-storey commercial building in the central business district of Parramatta in Sydney, Raffles Education said.

On a pro forma basis, if the disposal had been completed on 1 July 2018, the company’s earnings per share would have been 3.68 Singapore cents for the fiscal 2019 financial year, compared with 2.92 Singapore cents actually reported, the filing said.

In fiscal 2019, the property had contributed around S$8.24 million in net profit before tax, Raffles Education said, adding the property’s book value was around S$71.06 million.

Shareholder approval is required for the transaction, the filing said.

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