This article is from the Australian Property Journal archive
BLACKWALL Limited has posted a net profit after tax increase of 22% to $3.6 million for the full-year, driven by growth from its collaborative workspace business WOTSO.
Revenue jumped from $10.8 million to $17.4 million, and profit before tax from $3.5 million to $4.9 million.
Net tangible asset backing grew to 37 cents per share, earnings per security rose from 5.7c to 6.2c, and the final dividend will be 1.8cps.
BlackWall’s operations are across its wholly-owned subsidiaries, flexible office and workspace provider WOTSO WorkSpace and fund manager BlackWall Property Funds.
“Our top line has been gaining momentum for a few years now on the back of WOTSO’s growth. This year we have also seen some growth in management and performance fees from BlackWall Property Funds,” chief financial officer Tim Brown said.
The results are not inclusive of BlackWall’s $380 million sale of the Bakehouse Quarter in Sydney, which it negotiated a call option agreement that is exercised will see the transaction take place later in 2018.
The site was acquired from Arnott’s Biscuits in 1997 and original investors will have earned an IRR of 15.4% per annum, compounded quarterly.
“For many years we have been saying that the Bakehouse Quarter will be re-rated, so while we are pleased with the sale result, we are not surprised by the price,” BlackWall’s CEO Stuart Brown said.
He said it would generate around $245 million of cash for its investor network.
“We are working on a number of opportunities for those investors to reinvest this capital.”
BlackWall’s total return REIT, one of the larger investors in the Bakehouse Quarter, will receive over $30 million in cash when the transaction settles. Brown said the capital would be used to fund opportunities to grow WOTSO’s footprint, expecting to have the two WOTSO buildings in Adelaide and Brisbane syndicated off its balance sheet before Christmas.
BlackWall also announced its WOTSO site 55 Pyrmont Bridge Road site in Sydney’s Pyrmont would provide recording and photography studios, a first for the business.
The Level 2 space will utilise the studio fit-out of former tenant Fox Sports, and will add 102 new desks, studio rooms and office suites to the tenancy.
Australian Property Journal
