Foster's Group has abandoned the sale of a brewery site in Sydney. The drinks company had initially planned to sell its Kent Brewery site in the city to property developer Australand Holdings for A$203m (US$161m).
In September 2003, Foster's beer, spirits and non-alcohol division, Carlton & United Beverages, signed a conditional agreement to sell the site to Australand.
"The gross proceeds of the sale amounting to A$203m were due in instalments from June 2005, when development approvals were expected, to 2010," Foster's said in a statement.
"After extensive consultation, Australand Property Group and CUB have elected to mutually rescind their contractual arrangements."
Foster's said CUB would pursue an "alternative approach" to the sale of the Kent Brewery site.
CUB and its property advisers would now seek greater certainty around potential planning outcomes for the site before proceeding with any sale process.
Australand said the costs incurred by it to date for design and other costs in respect of the project were about A$4m after tax and would be expensed in Australand's June 2005 half-year results.
Sectors: Beer & cider, Soft drinks, Spirits, Water, Wine
Companies: Foster’s Group Ltd
