Wednesday 25 July 2007

Property developer Devine Limited (ASX: DVN) has acquired a four hectare subdivision site in the north Adelaide suburb of Burton for $4 million.

The parcel located at 367-369 Waterloo Corner Road is earmarked for a 79-lot residential subdivision with an end value of approximately $25 million. The strategic parcel is being acquired from the Italian Benevolent oundation SA Incorporated.

Devine's National Acquisitions Manager Luke Hartman said the site represented an excellent residential infill opportunity in the established residential suburb of Burton, located 21 kilometres north of the Adelaide CBD.

"There is currently an undersupply of land in Burton and this has contributed to healthy capital growth in the region during the past four years," Mr Hartman said.

The site is located 800 metres from a new retail convenience shopping centre, currently being completed.

Construction of the Burton subdivision by Devine is proposed to commence in the last quarter of 2007 and will comprise lots averaging 360 square metres in size.

"We will be offering a combination of house and land, and land-only packages and anticipate a strong response to the release," Mr Hartman said.

Devine's South Australian State Manager Steve Weightman said the company was keen to build its land bank in the region, following the recent success of its 209-lot Lakeside community at Andrews Farm.

"At Lakeside Devine averaged 13 sales a month over a 16 months sales period and this estate is now fully sold out," Mr Weightman said.

In March Devine announced its acquisition of a 10 hectare site in the northern Adelaide suburb of Munno Para for a 185-lot subdivision.

"Our Munno Para estate will be launched to the public this month and we expect buyers to be attracted to the project's larger lots, extensive parklands and amenities," Mr Weightman said.

"We view South Australia as a growth market and will continue to investigate opportunities for additional acquisitions."

Devine's National General Manager Housing and Land, Paul Nash said the company was continuing to build its land bank and was on target to achieve its goal of exceeding control of 10,000 lots by mid 2010.

"Recent acquisitions include the purchase announced last month of a 13.35 hectare site at the northern end of the Gold Coast at Pimpama for $9 million," Mr Nash said.

"A subdivision comprising around 200 lots is planned for the Pimpama parcel which when fully developed is expected to have an end value of more than $75 million."

Devine is currently investigating additional sites in Queensland, Victoria and South Australia.

Shareholders in Devine approved Leighton Holdings' acquisition of a 40 per cent stake in the company for $95.6 million on Thursday 26 April 2007.

The equity injection will allow Devine to reduce its gearing ratio and pursue new development opportunities.

Released by: Devine Victoria, 85 Coventry St, South Melbourne, Victoria 3205 Ph: (03) 8699 3100
Contacts: Shane Guymer, Sales & Marketing Manager, Devine Communities, Victoria (03) 8699 3100, Mob: 0447 664 294 Luke Hartman, General Manager Victoria, Housing & Land, (0437) 633 775
Prepared by: Barry Hyland of PR Plus, Level 1, 272 Pacific Hwy, Crows Nest 2065 on Ph: (02) 9439 9191, Fax: (02) 9439 9190. pluspr@ozemail.com.au