Property assets weighing on regional broadcaster Prime

Even ocean views are not bringing buyers as regional broadcaster Prime struggles to sell its property holdings.

Prime's property in Bunbury in WA. Picture: Supplied.

Prime Media boss Ian Audsley says the regional broadcaster is struggling to sell property across the country, blaming a dearth of buyers.

Asked on Prime’s investor interim earnings call this morning if the group had considered releasing some capital via the sale and leaseback of property, Mr Audsley said it had, but that it was proving to “very difficult”.

“Over recent years, we’ve sold a bit of property. We still have some that we’re trying to sell. But unfortunately in regional Australia there’s not a lot of interest in property of the scale and size that we have, and not a lot of interest in paying the amount of money that we want for it,” Mr Audsley said.

“In some cases, we’ve had quite attractive properties for sale, particularly in Bunbury, Western Australia, with a glorious view over the bridge, but we can’t find an interested party.”

Bunbury is located about 180 kilometres south of Perth and well known for Koombana Bay.

Chief financial officer John Palisi said “Bunbury is the only property for sale at this time.”

“In previous years, we have sold properties in Tamworth, Wollongong, Wagga and Albury – all of which have taken longer to sell than anticipated,” he told The Australian.

“It’s frustrating us. We would like to dispose those assets but it’s proving difficult,” Mr Audsley said.

Prime owns about $6.7 million worth of land and buildings, according to its financial report for the half-year ended December 31.

After the close of trade yesterday, Prime booked a net profit of $10.2 million for the six months to December 31, after a net loss of $8.6m over the same period a year earlier due to a non-cash impairment of $31m relating to its TV broadcast licences and $9.3m due to a deferred tax liability.

Challenging advertising demand in NSW and Victoria pushed first-half revenue down 5.9 per cent to $97.9m.

Its ad revenue in NSW and Victoria fell 5.3 per cent over the six-month period, in line with the market. Still, revenue over the summer rose 4.7 per cent, thanks to the popularity of its cricket coverage.