WebCentral books $2.2m in rent savings in latest example of 5GN synergies
Link copied to
The firm’s staff have been comfortably accommodated in 5GN’s Sydney offices.
And in the latest example of the combined group creating strong operating momentum, the company flagged a material rent saving of $2.2m this morning.
WCG advised that it has successfully executed a former Surrender Deed for its commercial offices at 680 George St, Sydney.
The company’s Sydney staff have been relocated and are now working out of several 5GN offices, including George St in Sydney.
WCG said gross annualised rent savings from the Surrender Deed will amount to around $4m.
The net annualised saving is expected to amount to $2.2m, adjusted for sublease income foregone. WCG will also pay a $200,000 surrender fee.
“In addition, bank guarantees issued to the landlord in relation to the property leases totalling $1.74 million will be returned to WCG,” the company said.
With another $2m flowing straight back to the bottom line, the revised lease arrangements are another example of how WCG has benefitted from the acquisition, after 5GN fended off a low-ball offer for the company’s assets by US-based Web.com.
Along with material cost cuts, WCG is also leveraging 5GN’s core competencies by improving its IT systems and network infrastructure, while providing access to an existing client base of more than 330,000 corporate customers.
The strength of the combined group has seen WCG shares rise materially since the date of acquisition, as 5GN establishes a leading footprint for fibre networks and data infrastructure services across the major Australian markets.
This article was developed in collaboration with WebCentral, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.