Fletcher Building (ASX:FBU, NZE:FBU) said its Laminex Australia division has conditionally agreed to sell its Cheltenham, Melbourne property to Forza Capital for AU$53.8 million, according to a Friday filing with the New Zealand bourse.

The transaction is contingent upon Forza completing environmental due diligence and securing internal approvals by mid-June, with completion anticipated before the end of the fiscal year, subject to the satisfaction of all conditions, per the filing.

Laminex Australia will continue occupying the site for at least three years after the sale while it evaluates its long-term manufacturing site requirements, the filing said.

The company expects the transaction to result in an estimated gain on sale of around AU$14 million in fiscal 2026, after deducting costs related to the sale, lease remediation, and restructuring, the filing added.