Icon looks to sell Broadbeach building and boost cash
GAS exploration company Icon Energy is putting its waterfront Broadbeach headquarters on the market in a move that could pump up its cash reserves as it steps up its Cooper Basin activities.
Managing-director Ray James said the move to market the Miami Key building, which comes with a marina, followed unsolicited approaches from would-be buyers.
The ASX-listed Icon bought the three-level building for $4.8 million in 2009, one of two adjoining office buildings developed by failed funder City Pacific and sold by receivers.
“We never intended to own the property forever – we’re not in the business of owning buildings,” said Mr James.
“It was just a fabulous opportunity at the time. We don’t have to sell but if it’s to be sold, the only fair way to do it is to put it on the open market.”
Mr James said the proceeds of a sale would go toward its activities in the Cooper Basin and its ATP855 tenement.
Icon is seeking a partner to develop a resource which previous drilling has shown to contain “a significant naturalgas reserve”. The company, based at Robina for many years, lost $5.67 million in its latest year and at June 30 had cash of $9.66 million.
Its Broadbeach property is being sold with annual net income of $518,000, a figure which means that on existing yields for office buildings, Icon could be looking at a substantial gain.
Icon has taken a new threeyear lease on the property, with two three-year options and annual CPI reviews.
The building is on a 2547 sqm site, has a floor area of 1967 sqm, and has a net lettable area of 1442 sqm.
It is being sold via an expressions of interest campaign closing on January 31 and is being marketed by Ray White Broadbeach’s Stuart Reeder in tandem with colleagues Tony and Adam Gerbic.