The West

HIA Awards 2011 - APT03 - Doric. Oceanique Apartments, Wannanup.
HIA Awards 2011 - APT03 - Doric. Oceanique Apartments, Wannanup.

Reborn property developer Port Bouvard says its balance sheet will be further improved by the sale of two assets.

The company, which last month announced a recapitalisation including a new debt facility with St George and a $23.8 million rights issue, announced today it had accepted a cash offer for a block of land adjacent to its Oceanique Apartments near Mandurah and sold one of its more expensive units at the complex, with both sales at a premium to book value.

"Under the revised arrangements with St George Bank, the two sales will not only reduce debt, but will add more than $1.5m to the company's working capital reserves," Port Bouvard said.

The company also announced it was on the lookout for a new chief executive after the end of acting chief executive Darryl Guihot's six-month tenure.

Executive director Stephen Court would manage the company's day-to-day affairs until then.

Last month's recapitalisation of the company enabled it to stave off collapse and provide breathing space to pursue the development or sale of its assets.

Port Bouvard has done it tough over the past two years, hit by the weak residential market.

The company is now keen to further reduce its $26 million inventory of unsold luxury units at its Oceanique complex.

The company hopes the recapitalisation will stimulate more interest in Oceanique.

It believes that some potential buyers have been deterred by its financial difficulties, while others have held back in the hope of buying a unit at fire sale prices from a receiver.

Port Bouvard shares were flat at 1.1 cents at 10.50am.

The West Australian

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