Monday 01 October 2007

Diversified property group Devine Limited (ASX: DVN) has announced the acquisition of a 41.86 hectare residential site west of Melbourne for $18 million.

The property, located 20 kilometres west of the Melbourne CBD in Truganina, was purchased from Caffee Pty Ltd. The site represents the balance of undeveloped land at Arndell Park Estate, of which 178 residential lots have already been constructed and sold.

Devine will seek to reconfigure the site to include additional residential lots, as well as a medium density and school component.

Devine's founder and Managing Director, David Devine, said the land acquisition at Arndell Park Estate further strengthened the company's presence in Victoria's residential housing market.

"Devine has a strong belief in Melbourne's residential market and is targeting regions where there is healthy population growth, existing infrastructure and the ability to deliver affordable house and land products," Mr Devine said.

"In the past four months we have announced four major acquisitions in Melbourne's outer suburbs. This is in addition to the three residential communities we've already established in the Brimbank, Pakenham and Tarneit regions."

Mr Devine said Arndell Park, like many regions on Melbourne's outskirts, is enjoying strong population growth and investment in key infrastructure.

"The Wyndham City Council forecasts that Truganina's population is increasing by 12.3 per cent each year. Between 2007 and 2011 the suburb's population is expected to double, from 3,647 people to 7,331," he said.

"Devine is confident of capitalising on the area's strong growth by delivering quality affordable housing within a masterplanned community setting.

"We are also cognisant of the future needs of the community, which is why we'll be seeking to integrate a new school into the site's planning approval."

He said the company is on target to achieve its forecast land bank of 10,000 equivalent lots by mid 2010.

Devine's General Manager Victoria, Luke Hartman, said the Arndell Park Estate is Devine's third active project in Melbourne's western growth corridor, close to established transport infrastructure, open space areas and education facilities.

"The main transport links of the Princess Highway and the Aircraft and Hoppers Crossing Railway Stations are both within three kilometres of the estate," he said. "There are also plans for a new railway station and shopping centre precinct within the surrounding community.

"The expanded estate will also feature Devine's first ever school site, which will be located close to the existing child care centre and large open space areas.

"Also within a five kilometre radius is the Westbourne Grammar School, Hoppers Crossing Secondary College, Bellbridge Primary School and Werribee Islamic College and the Werribee Plaza shopping centre."

The company plans to develop the site over six stages, with Stage One commencing in the first quarter of 2008.

Devine will be offering a mix of house and land packages and land only sales with lots starting from $120,000. House and land packages are expected to start from $290,000.

Mr Hartman said he was confident of strong demand for the estate's house and land and land only products, especially considering a significant portion of the land fronts onto Skeleton Creek.

Devine's Arndell Park Estate purchase is expected to settle in February 2008. Mr Hartman said Devine would continue to target new acquisition opportunities in high growth areas of Victoria to grow its residential development workbook.

On 31 August Devine announced the purchase of a 62-hectare prime subdivision site at Tarneit, south-west of Melbourne for $36.85 million. This followed the announcement on 31 May of Devine's $22.4 million purchase of a 42-hectare development site at Cranbourne, 49 kilometres south-east of Melbourne.

Earlier this month Devine reported the acquisition of four stages totalling 21.99 hectares within the Wyndham Springs Estate west of Melbourne for $5.54 million. On 29 August Devine announced an after tax profit of $21.367 million for the 2006-07 year, 13.2 per cent up on the previous year's result.

Contacts:
David Devine, Managing Director, Devine Limited on (07) 3233 1402
Sarah Martin, Rowland on (07) 3229 4499 or 0418 748 892