Velocity to switch focus from development to debt funding
Property development group Velocity has proposed a $93 million capital raising and shift its focus to debt funding other companies and projects.
Gold Coast beaches have reopened after three drownings over the weekend.
The plans to restructure the company, which has developed several properties on the Gold Coast, will go to a shareholders’ meeting next month and were part of a proposal from shareholder and fund manager 360 Capital.
The plans came as the company reported a loss for the December half year of $3.36 million despite a strong rise in revenue. It has also told shareholders it was unlikely to provide a dividend this year, but that could change if the restructuring is approved.
Under the plan Velocity will sell off its remaining properties and buy AMF Finance, a commercial real estate brokerage and advisory and Digital Software Solutions, an online marketplace for commercial real estate finance. The cost would be about $3 million and currently owned by 360 Capital’s real estate investment trust. That trust would also sell its stake in Velocity to 360 Capital Group.
Velocity will also change its name to Dealt Ltd.
The company said its key focus for the year was the continued reduction of existing debt through the sale of completed properties and a transition to the debt finding business.
