Readymix has sold its site on East Wall Road to the Dublin Docklands Development Authority (DDDA) for €23 million in cash, €7 million more than the guide price. Readymix had said it expected to make a profit of €20 million from the sale of the 1.6 acre site. The deal is expected to close on August 16th.
But the company, which makes concrete at the site, is not required to vacate the premises until January 2009. This gives it two and a half years to develop an alternative production location.
It is understood Readymix had already lodged plans to construct a new concrete plant in Ringsend to replace the East Wall site.
Readymix, which is 63 per cent owned by Mexican cement group Cemex, said the proceeds of the sale would be used to improve its asset base. NCB Stockbrokers estimates that, following the sale of the premises, Readymix will have net cash of €20 million- €25 million by the end of 2006.
"The group also retains a wide range of properties in Ireland capable of releasing value, notably at Blackrock in Dublin and at Naas," NCB analyst John Sheehan said.
Readymix, which has faced tough trading conditions in recent years, has been attempting to improve its performance. In addition to better pricing and costs cuts, it is using the proceeds of surplus assets to improve its asset base. Shares in Readymix closed four cent, or 1.7 per cent, lower at €2.32, yesterday.
