Blackwall Bakehouse Qtr Sale Delayed Again24 January 2019
Yuhu Group stunned the market in 2017 when it announced the acquisition of the Bakehouse Quarter in North Strathfield for $380m.
The acquisition of the six-hectare major commercial and retail precinct, on biscuit maker Arnott's former factory and warehouse site was one of the largest deals done in 2017. At the time Yuhu acquired the site under options and there has been much speculation as to whether the option would be exercised and the property settled.
In August 2018, the vendor agreed to extend the option period to September and to move the settlement date to February 2019. As well as the initial $38 million option fee paid in June 2017, YuHu were to pay up to $20 million more in call option fees and pre-payments before Christmas. Those payments were made and the settlement appeared to be on track for settlement in February 2019.
Today, however Blackwall announced another deal had been completed with the Yuhu Group to defer settlement, this time until April 2019 and with a further payment of $10M, due to be paid by the 15th February.
The delay in the payment could be a signal of Yuhu's struggle to raise capital (either from China or domestically).
There has also been no further news on the announcement from Blackwall as to whether they will proceed with an offer for Kirela investors (the current vendor of the Bakehouse Quarter) to move over $100M of the sale proceeds into the Blackwall Property Trust REIT (BWR). Blackwall had advised that they would release further information in December before an EGM in February.