11/11/2011 - 14:53

Port Bouvard funnels Point Grey funds to reduce debt

11/11/2011 - 14:53

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Port Bouvard funnels Point Grey funds to reduce debt

Property developer Port Bouvard will re-allocate funds previously set aside for its Point Grey project near Mandurah to repay its debts, in order to qualify for an extension of its banking facilities until December 31, 2012.

Port Bouvard said it currently holds three facilities with St George Bank; called Oceanique, Land Acquisition and Multi-Option.

St George offered Port Bouvard anextension to its debt facilities on the condition that the developer reduce the Land Acquisition facility from $30 million to $5 million.

“The only available source of funds to the company are those which the company had set aside to fund the stage one and initial external infrastructure costs of Point Grey, which were raised pursuant to a capital raising completed during July 2010,” Port Bouvard said in a statement to the Australian Securities Exchange.

As of October 31, the company held $7.4 million in cash.

It said it would now pursue a longer  term financing strategy for Point Grey, based on the development receiving all the necessary approvals to proceed.

Sales and settlements of the Oceanique apartment development near Mandurah would also support the long-term financing process, chief executive John Wroth said.

“While the majority of the funds originally allocated to Point Grey will now be applied to St George’s revised financing requirements, it is important to note that the approvals process for Point Grey, which will be completed in its entirety in the coming months, will not be affected, nor will the proposed pre-sales campaign for stage 1, currently proposed to commence in 2012,” Mr Wroth said.

At close of trade today Port Bouvard shared had gained 6.3 per cent, to trade at 5 cents.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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