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- Development Victoria (DV) calls back Ballarat property from Broo (BEE) for $2.3 million
- It comes after Broo attempted to sell the site for $7.5 million in June, 2021, which was conditional on receiving approval from DV, which was not granted
- Broo first purchased the 14.8 hectare site for $2.16 million in February, 2017 with plans to develop the “world’s greenest brewery” – a $95 million eco-brewery capable of producing 480 million bottles per year
- However, in 2020 Broo signed a brewing agreement with Carlton & United Breweries (CUB), and chose to scrap plans for the brewery
- Broo says it has used the money to repay the entire loan and outstanding rates and taxes associated with the land
- BEE shares remain in a halt, pending the outcome of the company’s strategic review, and last traded at 0.9 cents
Development Victoria (DV) has taken back a Ballarat property from Broo (BEE) for $2.3 million, after declining the company’s attempts to sell the property back in June, 2021.
Broo had initially purchased the 14.8 hectare site for $2.16 million back in February, 2017, with bold plans to create the “world’s greenest brewery” – a $95 million eco brewery capable of producing 480 million bottles a year and accomodating 10,000 people.
However, in 2020 Broo signed a brewing agreement with Carlton & United Breweries (CUB) and chose to scrap the plans for the Ballarat brewery saying it would instead focus on the outsourced production of its beer through CUB.
In June, 2021, Broo attempted to sell the property for more than three times the price it had initially purchased it for, at $7.5 million.
But that sale was conditional on receiving approval from the Victorian Government’s property development agency, Development Victoria, which rejected the sale.
Today, DV exercised its option to call back the property for $2.3 million.
Broo said it had used the funds to repay the entire loan and outstanding rates and taxes associated with the land in full, reducing the company’s total liabilities by $2.1 million.
Chairman Kobe Li said it was a “disappointing” outcome for all Broo shareholders, and the board had made “every possible attempt” to extend the contract with DV and explore feasible commercial outcomes that could be beneficial for all stakeholders.
“Unfortunately, despite our best attempts to find workable solutions the extension was
not granted by DV.”
“The board continues to focus on delivering value for shareholders with the
ongoing strategic review,” Mr Li said.
Broo said its shares would remain in suspension pending a further market update regarding the outcome of its ongoing strategic review.
Shares last traded at 0.9 cents.
