The proposed sale of land at the site of a Ballarat brewery that never materialised has fallen through.
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Broo, which has owned a block of land at the Ballarat West Employment Zone since 2017, had entered an agreement to sell the land to Ballarat-based Bentley Property Group in February.
The sale was dependent on approval from Development Victoria, with a deadline set at April 21.
However, Broo announced on Friday that the sale had been terminated as it never received approval from Development Victoria.
In a statement to the ASX, Broo says a deposit of $750k has been returned, but a proposed sale price has never been made public.
It now says it will explore "alternative opportunities".
"Given the protracted nature of the approvals process to date, and having assessed the likelihood of such approvals being forthcoming in the short terms, Broo has determined that granting a further extension to the approval period would not be in he best interests of shareholders," the statement read.
"The board is, as part of a wider strategic review of the business, exploring alternative opportunities to realise value from the Ballarat property in a manner that provides certainty to shareholders, and will continue to progress communications with DV in this respect."
A Development Victoria spokesperson said in a statement the agency is aware of the situation.
"We are committed to achieving the best outcome for the Ballarat West Employment Zone project and the Ballarat community - and will continue discussions with Broo as to how it will fulfil its obligations," they said.
"Should Broo fail to deliver against the commitments made under the contract of sale with us - then we have the ability to require the return of the land."
The company bought the block in 2017, promising a brewery and entertainment centre within five years, but construction never began.
Earlier in February, Broo announced a new company secretary, Nova Taylor from the Automic Group service company, and in January, in a quarterly activity update, the company stated more than 50,000 cases of beer had been sold through more than 650 retailers.
Broo was one of the first major tenants at the BWEZ precinct, with a 15 hectare site that would include a renewable energy-powered brewery, massive entertainment facility, and a zipline, creating 100 jobs.
However, it announced its intention to sell the land in mid-2021, attracting criticism from the City of Ballarat councillors, which accused the company of landbanking.
According to the original sale, the company had five years from February 2017 to begin construction.
The company signed new agreements for production and distribution following the collapse of an agreement to market the Australian-made beer in China - a television commercial from January 2021, starring founder and chief executive Kent Grogan, leans heavily into Australiana imagery.
- updated 6.10pm with comment from Development Victoria
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