The CSR Limited (ASX: CSR) share price is slipping in late morning trade, down 0.35% at the time of writing. This comes after shooting 1.2% higher on opening.
CSR shares are currently trading for $5.68.
Below we take a look at the building product supplier's property sale update.
What property sale was announced?
In this morning's ASX release, CSR reported the sale of 4.6 hectares of land on the outer edge of its 200-hectare site at Badgerys Creek, NSW. The total proceeds are $20.7 million, which works out to be $450 per square metre for the asset.
The company's Badgerys Creek property borders the new Western Sydney Airport, which is due to open in 2026.
CSR said it is currently rehabilitating the former quarries at the location, which was confirmed for industrial zoning in September. The company won't have to do any more work on the 4.6 hectares it is selling.
CSR CEO Julie Coates commented on the sale:
CSR's Badgerys Creek site is one of the largest properties adjacent to the new Western Sydney Airport which will bring significant growth to the region.
The company's chief financial officer, David Fallu added:
With approximately 140 hectares of developable land at Badgerys Creek, we are continuing to invest in the extensive rehabilitation and reconstruction of the former quarries at Badgerys Creek, which will be continuing over the next few years.
CSR expects to complete the transaction within its current financial year, which ends on 31 March. The sale will see earnings before interest and taxes (EBIT) for the financial year come in at approximately $46 million. That's up from the company's prior EBIT estimate for the year of $34 million.
CSR share price snapshot
Over the past 12 months, the CSR share price is up 1.4%, trailing the 5.6% gain posted by the S&P/ASX 200 Index (ASX: XJO).
So far in 2022, CSR shares are down 5%.
