Wednesday 16 January 2008

Diversified property group Devine Limited (ASX: DVN) has continued its expansion in Victoria with the purchase of a residential estate at Lyndhurst, 34 kilometres south east of Melbourne.

Devine will acquire the balance of the partially-developed 76 hectare estate, The Rise, in a staged transaction that will provide the company with control of 125 undeveloped housing lots.

It is the sixth residential site acquired by the company in Victoria over the past 12 months. When fully developed and sold the project will have an estimated end value of $40 million.

Devine's founder and Managing Director David Devine said the opportunity to secure control of The Rise estate allowed the company to increase its residential land bank in Melbourne's high-growth south east corridor.

"Our other community in Melbourne's south east - Cardinia Grove - has met with strong sales success and is almost sold out, and we are focused on further expanding our development portfolio in this region," he said.

"In December Devine announced the acquisition of a prime 43.65 hectare site in nearby Pakenham for $20.7 million, which is earmarked for a master-planned residential community with an estimated end value of $200 million.

"This latest acquisition in Lyndhurst will deliver immediate building and land revenue for Devine in the 2009 financial year and will further boost our presence in the region."

The company plans to release 64 lots later this month.

Mr Devine said the company was on track to achieve its land bank target of 3,500 lots in Victoria and 10,000 lots nationally by mid-2010.

Devine General Manager Victoria, Luke Hartman, said the prime residential site was well positioned to meet the strong demand for land and housing product in the area. "Population growth in the Lyndhurst area is very strong at 5.7 per cent, or 3,285 residents, annually," Mr Hartman said.

"Of this, 63 per cent of the growth is due to new families settling in the area and is strongest in the 20 to 35 year age bracket, which ideally suits Devine's demographic. "Devine is in an ideal position to offer a mix of affordable land, and home and land packages, to the market within a matter of weeks and we expect strong buyer interest."

Mr Hartman said The Rise was well situated close to established transport infrastructure, including the M1 and the South Gippsland Highway and the proposed Lynbrook Railway Station.

The Rise is also located in close proximity to the major centres of Dandenong, Frankston and Berwick and a number of education, shopping and recreation facilities, including Banjo Patterson Park which features a lake, sporting and picnic facilities.

Mr Hartman said Devine would continue to develop communities where there is good surrounding infrastructure for buyers, a high level of design quality and an affordable entry price into the Melbourne residential market.

On 8 November 2007 Devine announced a one-for five renounceable rights issue. The issue which closed on 6 December raised $62.5 million enabling the company to capitalise on future property development opportunities.

The funds from the rights issue will allow the company to progress its portfolio of projects, creating a pipeline of future work that, when fully developed and sold, will have an end value of more than $3 billion.

On 29 August 2007 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
Kathy Mac Dermott, Rowland on (07) 3229 4499 or 0448 844 508
Sarah Martin, Rowland on (07) 3229 4499 or 0418 748 892