Fletcher Building sells Melbourne site for $53.8M

Fletcher Building (ASX:FBU) has formalised an agreement to sell its Laminex Australia manufacturing site in Cheltenham to investment manager Forza Capital for $53.8 million.

The transaction marks a pivot for the construction giant as it continues to streamline its trans-Tasman operations and bolster its balance sheet for the 2026 financial year.

The 5.5-hectare property on Bay Road has been a fixture of the Melbourne industrial landscape for over 70 years.

Under the terms of the deal, Laminex AU will enter a three-year leaseback arrangement, ensuring manufacturing continuity while the group conducts a comprehensive review of its Australian footprint.

Completion of the sale remains subject to Forza Capital’s environmental due diligence and internal governance hurdles, with a final settlement targeted for the end of FY26.

Fletcher Building expects the divestment to generate a modest gain on sale of approximately $14 million, net of restructuring and remediation costs.

Managing Director and CEO Andrew Reding noted that the move is a "further step in optimising the group’s property footprint" while providing the necessary flexibility to refine Laminex’s long-term requirements.

Forza Capital is reportedly eyeing a mixed-use future for the site, with plans to repurpose existing commercial structures and explore residential development opportunities on a portion of the land.

At the time of reporting, Fletcher Building’s share price was $2.38.