Decmil Group is said to have three strong offers for its Homeground Gladstone Accommodation Village, defying talk in the market that the sale had generated limited interest.
The workforce accommodation village was last valued at $85.4m in the company’s books and is up for sale through Resolute Advisory as Decmil remains in strife over contracts.
However, selling an asset amid COVID-19 disruptions is not thought to be an easy feat.
The village is 20 minutes’ drive west of Gladstone and has 1392 rooms, with facilities including a swimming pool, gym, tennis court and basketball court.
Last Thursday, Decmil told the market it had won two projects in Queensland and Western Australia worth $36m and, should it achieve a strong price for its Gladstone asset, it may put the company back on to a sure footing.
It posted a $75m half-year loss and has since shut down its New Zealand operations after losing a Department of Corrections contract.
Decmil also remains in arbitration for work on the Sunraysia Solar Farm project in NSW.
Decmil’s shares have been suspended from trading since February 25 and problematic contracts, rather than any large debt pile, is thought to be its undoing.
Advisory firm Moelis has been drafted in to provide advice.
Five years ago, Decmil was worth $350m, but it is now worth almost $54m.
Other companies have fallen victim to problematic contracts in the renewable energy space — one being RCR Tomlinson, which collapsed into administration in 2018.
John Laing, which is staging an exit from Australia, has placed its renewable energy projects up for sale through Macquarie Capital, but has problematic contracts that need to be addressed before a sale can proceed.
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