Embattled publicly-listed brewer Broo is no closer to a sale for the site that was to be home for its now-abandoned “World’s Greenest Brewery“.
In a statement to the ASX this week, the company advised it is still in discussions with Development Victoria and agreed with the proposed purchaser to extend the date for obtaining approvals from to 10 October 2021.
The company announced the proposed sale of the land in June, though the contract was conditional upon approval from Development Victoria which is responsible for the Ballarat West Employment Zone on which it sits. It was also conditional on the purchaser entering an approved use agreement with Development Victoria.
The site is subject to a call option under the original purchase agreement with the vendor having the option to buy back the land in the event that Broo defaulted on its obligations to complete the development of a commercial brewery at the site and ensure that at least 100 full-time employees are employed within five years of settlement. This is due to expire in February 2022.
Broo had announced that it had sold the land for $7.5 million after purchasing it at a cost of $2.16 million. If approved, the sale would have provided the struggling business with a much-needed cash injection.
Mildura Brewery listed for sale
The ASX announcement comes as Broo announced it was seeking to sell its Mildura brewery and pub.
Broo purchased the Mildura Brewery from chef Stefano di Pieri in February 2017. CEO Kent Grogan told the Herald Sun that year that he paid $1 million for the brewery and its brands and was confident the facility could produce 5 million litres a year.
In its s 2017 Annual Report, the company advised that “significant improvements” had “increased the capacity of the brewery to over 1.5 million litres per year”.
The report also noted that while the company has purchased the Mildura Pub and Brewery leasehold businesses it did not purchase the land and buildings. These were purchased by the related entity Mildura Brewery (AUB) Pty Ltd, a company owned by Grogan AUB Pty Ltd and De Graaff AUB Pty Ltd.
Brews News understands that the current sale is for the business and land together, though it is not clear how much the ailing Broo would receive from any sale.