Qantas in land sale for $802 million to reduce debt

Qantas will use an $802 million land sale to reduce its debt and may yet relocate its headquarters to the divestment property.

The carrier is selling 14 hectares of largely undeveloped land in Mascot, Sydney, to support its financing following the COVID-19 crisis.

Of the 18 bids, a consortium of LOGOS Property Group emerged as buyers, including AustralianSuper.

Qantas is talking with the group about developing the site so that it can be leased for company operations.

Airline boss Alan Joyce said Qantas’ headquarters, training and distribution centers could be combined to sit next to the airport.

These transactions are now spread across Mascot.

Qantas management will decide next year whether it wants to redevelop the land.

The airline and real estate group will also decide whether to change another three hectares of land adjacent to the site. This would increase the sales value to $1 billion.

A Qantas property review this year found that the airline did not need to develop the land.

Payment is expected in the first half of the fiscal year.

ASX shares rose 1.7 percent to $5.67 at 1404 AEDT.

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