Homeground sale: Value written down by tens of millions
The value of the Homeground Village near Calliope has been written down by $28.8 million as the sales process for the workers' accommodation continues.
The facility's owner, Decmil Group, said the asset had been revalued at $56.6 million in an announcement to the ASX this week.
Homeground was previously valued at $85.4 million according to the most recent interim financial report.
Falling oil prices and the considerable hit taken by the tourism industry by the coronavirus prompted Decmil to reassess its value.
"This will crystallise a $28.8 million non-cash impairment in the current financial year," the company said in a statement.
Decmil has received one firm offer during the sales process to date.
In last year's annual report, Decmil noted any reduction of economic activity in Gladstone would impact occupancy and, consequently, profit through Homeground.
"Management expects that in the medium term, new opportunities will arise for Homeground Gladstone as the LNG sector in Gladstone moves from construction to the operational and maintenance stages, however the risk of volatility in the short term remains present," the 2019 report said.
Homeground has almost 1400 rooms designed to host workers in the mining and resources sectors.
Decmil also announced a new CEO to lead the company's "continuing turnaround strategy".
Executive director Dickie Dique has been appointed chief executive officer by the board.
He replaces Scott Criddle, who will remain with the business as executive director.
"The board is confident that under Dickie's leadership and with significant infrastructure spending in Australia over the next few years Decmil will drive shareholder returns through an unwavering focus on profitable project delivery," chairman David Saxelby said.