Qantas has had a pretty tough couple of years...but it's got some much-needed good news.
Background: Qantas has had a pretty tough couple of years. Let's see...international borders closed...over 330 days of domestic travel restrictions. All up, the Qantas CEO said COVID was likely to cost the airline $20 billion in lost revenue by the end of 2021. Yikes.
What happened: But in some much-needed good news, Qantas has banked around $802 million after selling extra land next to Sydney Airport. This piece of land was said to be the most valuable in the country, because of its prime position next to the airport.
What else: Qantas will use the cash to pay down some of their (very large) debt that's been building up during the pandemic. Once the deal is done and dusted, it'll be a record-smashing sale for industrial property.
💡Industrial property is any property that's used for industrial purposes. Think warehouses, factories...pretty much anything that's designed to manufacture and store goods.
💡Australia's industrial property sector is booming. In fact, it's tipped to hit $120 billion by 2025. And you can thank our COVID-induced online shopping addictions for that.
💡For every $1 billion of incremental online sales, an additional 70,000 square metres of warehouse space is needed. That's nearly 3 times the size of the MCG. So you can see why Qantas got a premium price for their juicy airport land.
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