20 December 2007

Diversified property group Devine Limited (ASX: DVN) has continued its expansion north of Adelaide, successfully acquiring two prime land parcels tendered by the South Australian Government.

The adjacent sites are located 32 kilometres north of the Adelaide CBD in the high-growth Andrews Farm area and are divided by Petherton Road.

Devine purchased the two land parcels, aggregating 52.56 hectares, for a total investment of $46.02 million.

Devine's founder and Managing Director David Devine said the sites would boost the company's development pipeline in South Australia by an estimated 1,000 lots.

"These two prime land sites are among the last parcels of land zoned for residential development in this high growth area," Mr Devine said.

"Our other masterplanned communities in Adelaide's northern suburbs have met with strong sales success and our neighbouring Lakeside estate at Andrews Farm is completely sold out.

"We have also achieved record sales results at our nearby Oakwood on Andrews and Sanctuary Gardens estates which are both expected to sell out in early 2008.

"These new acquisitions highlight our continued focus on further expanding our development portfolio in this region and other high-growth corridors surrounding Adelaide."

Construction on the two new Andrews Farm sites is expected to commence in mid-2008, with the first land release scheduled for April next year.

Mr Devine said the acquisitions would help the company reach its national land bank target of 10,000 lots by mid-2010.

Devine General Manager South Australia, Steve Weightman, said the sites were well positioned to meet the strong demand for land and housing product in the area.

"Located midway between Adelaide and the Barossa Valley, the two land parcels represent an attractive opportunity in an established residential market with high demand for land," he said.

"The sites are located within two kilometres of the region's major transport arterial Main North Road and less than one kilometre from the new Northern Expressway, which will commence construction in mid-2008.

"They are also in an area which is the focus of significant future master planning by the local council and State Government to improve the amenity of the region.

"This will include the creation of a new suburb, Playford North, and the delivery of new community facilities such as schools, training centres, health centres, improved public transport facilities, parks and sporting and recreation areas."

Mr Weightman said there has been an annual average price growth of 21 per cent in the Andrews Farm area over the past five years.

"Property values are expected to continue to increase, fuelled by the area's strong population growth," Mr Weightman said.

"In 2001, the population in the City of Playford was estimated at 68,840. By 2011, this is expected to have increased by almost 14,000 people to 82,787."

Mr Weightman said Devine was well positioned to offer a mix of value-for-money land, and home and land packages and was confident of strong buyer interest in the new releases.

All homes will be developed to meet a five star energy rating and will include solar hot water systems. The new development will also incorporate 'purple pipes' - a water conservation measure that delivers reclaimed water for toilet flushing and the irrigation of gardens and reserves.

Devine has made a number of strategic acquisitions in South Australia in 2007, including the purchase of 18.85 hectares at Mount Barker for $13.9 million and 3.488 hectares in Munno Parra West for $1.615 million in May.

Also in May, Devine purchased a four hectare subdivision site in Burton, north of Adelaide, for $4 million. In March, the company announced the acquisition of a 10 hectare site in Munno Parra for $5.4 million.

Mr Weightman said Devine considered South Australia to be a key growth area and would continue to investigate acquisition opportunities across the state. 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:
Mr David Devine, Managing Director, Devine Limited on (07) 3233 1402
Steve Weightman, General Manager South Australia, Devine Limited on (08) 8306 5678 or 0411 866 443
Kathy Mac Dermott, Rowland on (07) 3229 4499 or 0448 844 508
Sarah Martin, Director, Rowland on (07) 3229 4499 or 0418 748 892