Thursday 11 October 2007

Listed diversified property group Devine Limited (ASX: DVN) has acquired two land parcels totalling 55.55 hectares at Redbank Plains, 28 kilometres south west of Brisbane and nine kilometres east of Ipswich City, for $30.15 million. In two separate transactions, Devine has purchased a 33.51 hectare site for $17.8 million and a 22.04 hectare site for $12.35 million.

The two sites, both located on School Road, adjoin an existing 68 hectare land parcel purchased by Devine in August 2006.

Devine founder and Managing Director David Devine said the amalgamated sites would create a 123.55 hectare land parcel and enable the company to create a masterplanned community in the growing region east of Ipswich. "These two latest acquisitions have allowed us to almost double our existing land holding in the immediate area, giving us the necessary scale to create a masterplanned Devine community in Redbank Plains," Mr Devine said. "The amalgamated site will yield more than 1,200 residential blocks, landscaped parklands and three commercial 'super lots'.

"Under the proposed plan, these super lots will provide a mix of convenience retail and community services.

"This project is part of the company's long-term commitment to create largescale, masterplanned communities where residents can enjoy the lifestyle benefits from purpose-built amenities, services and key infrastructure."

Mr Devine said the company was continuing its strategic expansion into major residential land development and widen its target market beyond its traditional first home buyer base to include second and third home buyer sectors, as well as investors. "Our securing of significant broadhectare holdings in high growth residential suburbs allows Devine to deliver a holistic mix of housing choices and carefully planned amenities which have a strong emphasis on lifestyle."

Mr Devine said the company was also focused on securing sites in regions with major existing infrastructure. "Redbank Plains is an attractive area for development as its residents are well serviced by road and rail infrastructure, including good access to the Centenary Highway and the Goodna Railway Station, which provides frequent services to the Brisbane CBD and Ipswich City," Mr Devine said.

In addition to these existing services, the extension of the Western Freeway is currently under construction and will extend the freeway from Springfield to Amberley. This is scheduled for completion in late 2008.

"Planning is currently underway to further improve these services, with a proposed new rail corridor and station to be established in the area as part of the new Brisbane to Ripley rail line," he said.

"This is expected to be completed by 2025 and will reduce travel times to the Brisbane CBD."

According to the Australian Bureau of Statistics, the region's population increased 5.1 per cent each year between 2001 and 2006, to 51,674 people. Queensland General Manager for Devine Housing and Land, Colin Boulton, said Devine has a proven track record in Brisbane's growing western corridor, achieving strong sales at its 180-block Collingwood Park Estate.

"Population growth in the western corridor, particularly in Redbank Plains and the Ipswich City East region, has resulted in strong demand for purpose-built, integrated communities," Mr Boulton said.

"The emergence of significant retail, transport and education infrastructure has also been a drawcard for home buyers to the region.

"The proposed community is close to all major amenities including Redbank Plaza, the $600 million Orion Town shopping centre which opened in March, and the expanding Swanbank business park.

"It is also close to the Springfield campus of the University of Southern Queensland, the Bremer Institute of TAFE and is less than five minutes from the existing Redbank primary and secondary schools."

Mr Boulton said further growth was forecast in the region, with Ipswich identified in the Queensland Government's South East Queensland Regional Plan as a Principal Activity Centre.

He said land prices in the Redbank Plains Estate are proposed to start from $135,000, with house and land packages starting from approximately $310,000. "We are confident that these affordable house and land packages, combined with the site's strategic location and the benefits of living in a masterplanned community, will attract considerable interest from home buyers," Mr Boulton said.

Devine Queensland State Acquisition Manager Jason Northwood said the purchase of the two sites in Redbank Plains would replenish the company's land bank in the area, which due to strong demand was expected to be absorbed by mid-2008.

He said the acquisition also represented a further strategic expansion of Devine's presence in Brisbane's growing south-west region.

During 2006-07 Devine increased its national land bank by 51 per cent to total 4,580 lots as at 30 June 2007. Following a number of recent acquisitions the company now owns or controls over 7,000 lots in Queensland, Victoria and South Australia. The company is on track to achieve its target of building a national land bank of more than 10,000 blocks, under the brand Devine Communities, by mid-2010.

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.

Devine has been acquisitive along Australia's eastern seaboard and on 1 October 2007 announced the purchase of a 41.86 hectare residential site in Truganina west of Melbourne for $18 million. On 20 September 2007, Devine announced the purchase of the Sandstone Lakes Estate near Bribie Island, north of Brisbane, for $38 million.

In May Leighton Holdings' acquired a 40 per cent stake in Devine for $95.6 million which represented Leighton's strategic entry into the residential development market.

The transaction has enabled Devine to fast track its expansion program and undertake further geographic diversification in the medium term.

For further information please contact:
David Devine, Managing Director Devine 07 3233 1402
Kathy Mac Dermott Rowland. 07 3229 4499 or 044 88 44 508
Sarah Martin Rowland. 07 3229 4499 or 0418 748 892