Ariadne Australia partners with Precinct Properties

Ariadne Australia (ASX:ARA) has announced a strategic partnership with Precinct Properties to develop the Orams Marine Village and a nearby residential site in New Zealand. The agreement involves Orams Group Limited and Orams Residential Limited working alongside Precinct Properties, aiming to complete the deal by November 2024. This partnership focuses on accelerating commercial and residential construction projects.

Summary and outlook on Ariadne's strategic partnership

Ariadne Australia (ASX:ARA) has formalized a partnership with Precinct Properties to develop the Orams Marine Village and an adjacent residential site in New Zealand. This collaboration involves Precinct acquiring stakes in both the marine village and residential site, with Orams Group maintaining a majority interest in the marine facilities and full ownership of Orams Marine Services. The transaction is set to substantially lower Orams Group's debt, enhance recurring cash flows, and bolster their financial standing. The strategic venture aims to fast-track the completion of marine and residential projects, positioning Ariadne and its affiliates as leaders in New Zealand's property market. The partnership, expected to conclude by November 2024, is anticipated to create significant value for stakeholders while supporting the continued growth and market dominance of Orams Marine Services.

Executive commentary on the partnership

The execution of these partnership agreements marks a significant step forward in our strategy to enhance and expand our presence in New Zealand’s marine and residential property sector. This collaboration with Precinct Properties will not only accelerate the development of our existing assets but also significantly strengthen our financial position by reducing debt and securing stable cash flows. The strong performance of Orams Marine Services further underscores our leadership in the marine services market, and we are confident that the forward order book will continue to support our growth trajectory. We are excited about the opportunities this partnership presents and the value it will create for our stakeholders.