Qantas is getting closer to offloading its under-developed land in Sydney’s Mascot.
The post Why the Qantas (ASX:QAN) share price is in focus on Tuesday appeared first on The Motley Fool Australia. –
The Qantas Airways Limited (ASX: QAN) share price is on watch this morning after the airline confirmed that it has received bids from numerous potential buyers of its Mascot land.
The airline expects the sale to be worth several hundred million dollars. Many outlets are reporting it will result in a $500 million payday for Qantas.
The Qantas share price finished yesterday’s session trading for $5.39 after gaining 0.94% over the course of Monday.
Let’s take a closer look at today’s news of Qantas.
Qantas share price in focus on news of buyers
The Qantas share price will be one to watch this morning after the airline confirmed it has received 18 competitive bids from potential buyers for its nearly 14-hectares of under-developed industrial land.
Qantas launched an expression of interest to scope out buyers for the Mascot land in July.
A Qantas spokesperson commented on the strong interest in the land:
What’s been clear from the market is that there’s a lot of value in this land given how the surrounding area has developed over the past decade or so. Assuming we sell some or all of the 14 hectares that we took to the market, we’d expect to have agreements finalised in the next two months.
Qantas expects to have finished offloading the 14-hectares by the end of 2021. The funds resulting from the sale will be put towards paying off the airline’s debt.
Market watchers might want to keep an eye on the Qantas share price in the coming months as the Mascot land goes under the hammer.
As The Motley Fool Australia has previously reported, Qantas has owned some of the land since the 1960s. Its value has quadrupled over the last decade as South Sydney’s industrial precinct has grown.
The Qantas distribution centre is also reportedly located on the land. Qantas is said to be planning to lease the centre back from its potential buyer.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.