CVC (ASX:CVC) and its LAC Unit Trust vehicle decided not to exercise a call option to acquire the Liverpool project property in New South Wales following a review, according to a Monday filing with the Australian bourse.
The vendor, Prysmian Australia, agreed not to exercise its put option, with the option deed set to lapse on Sept. 1, per the filing.
The vendor will pay a break fee on or before Sept. 30 in consideration for LAC agreeing not to exercise the call option, and will also refund all deposit payments totaling around AU$46 million paid by LAC on or before Jan. 29, 2027.
The property was due to settle in March 2027 for the balance purchase price of roughly AU$124 million.
"There were a number of constraints identified for the future development of the site as industrial which resulted in a higher downside risk versus agreeing not to exercise the option, as well as the significant cash outflow required to settle the property," CVC said.
The company added that it recognized a write-down of around AU$13 million against the project in the fiscal year ended June 30.