Millions for K&D site
HARDWARE retailer Kemp and Denning has sold its former timber yard in Melville St, Hobart, as part of a restructure that ultimately could end in the sale of its larger city site.
Chairman of the 116-yearold company Greg Goodman has told shareholders that a contract for the sale of 90 Melville St was signed on February 16.
The Mercury understands Hobart developer George Giameos has had a close look at the site, which is presently leased to car park operators Care Park.
“Your directors signed a contract for the sale ... at a price greater than its 2017 book value,’’ Mr Goodman told shareholders.
Recent CBD purchases are believed to have pushed the site’s value from the book value price of about $1.3 million to a range of between $2.8 and $3.4 million.
The impending 90 Melville St sale has boosted the company’s financial position.
“Your company remains debt free and has cash at the bank of $4.8 million,” Mr Goodman told shareholders.
“As a result of the sale of 90 Melville St directors expect the company’s cash position to further strengthen prior to the end of the financial year on May 31, 2018.”
Shareholders, mostly members of the Kemp family, have been rewarded with a 20 cent a share interim dividend to be paid on March 28.
The share price of the public unlisted company recently lifted from $3 to $4.30 on its most recent sale on January 19.
Mr Goodman foreshadowed K&D’s strategy at last year’s company annual general meeting in September.
He said it was business as usual for the next 12 months while options were examined.
Hardware giant Bunnings recently told the Mercury it was looking for a central city site in Hobart. Bunnings general manager property Andrew Marks said: “Central Hobart remains an area of interest and we would consider opening another store there in the future if the right opportunity became available.”
Bunnings has existing outlets in southern Tasmania at Mornington and Kingston and Glenorchy.
Woolworths is also believed to have looked closely at K&D’s main Hobart site, at 103 Melville St and over the road from the former wood yard. It is now estimated to be worth $20-$30 million.
It is understood the University of Tasmania is also interested in the site, possibly for its $400 million Science, Technology Engineering and Maths campus in the CBD.
Kemp and Denning has previously closed or sold off stores at Devonport, Glenorchy, Cambridge and Kingston over the past few years as it plummeted to a $9.8 million trading loss in 2016-17.