Compass sells Gosnells markets for $6m

Compass Hotel Group has sold the Gosnells Railway Markets for nearly $6 million, with funds to be used to retire debt and working capital.

The company said it sold the markets, a non-core asset, for $5.675 million, which reflected a 13.5 per cent premium to valuation and an 18.3 per cent discount to the book value.

Details of the buyer were remain confidential, a Compass spokesperson said.

Compass said it will use funds generated from the sale to retire debt and, subject to St George Bank approval, inject working capital into the group.

"Compass continues to look at various options to strengthen the Company's balance sheet including the divestment of non core assets," it said.

The company had purchased the markets as part of a package deal that included the adjacent Gosnells Hotel, which it still retains.