Orbital books $4.3m profit on sale

Engine technology developer Orbital Corporation will book a $4.3 million profit on the sale of its Balcatta property to a syndicate of investors.

The company said today it has entered a sale and leaseback agreement with Balcatta Properties Pty Ltd for its property in Whipple St.

The property has been sold for $8.65 million, following a marketing campaign initiated by Orbital, which is looking to free up cash.

It will be leased back for 10 years (plus two five years options), with a rental of $745,000 per year subject to three per cent annual increases and a market value review on exercise of the options.

Chief financial officer Keith Halliwell said the proceeds will be used to "invest strategically in cash generating assets".

"Orbital has a strong balance sheet and the sale will provide a substantial cash reserve," he said.