Friday 30 November 2007
Listed property developer Devine Limited (ASX: DVN) has entered
into a contract to sell its exclusive Hideaway @ Currumbin site on
the Gold Coast for $75 million.
The 153.12 hectare land parcel, located at the gateway to the
Currumbin Valley, has been acquired by FKP Limited. The contract is
conditional on Devine securing operational works approval for the
development from the Gold Coast City Council and provides for
settlement to occur via installments paid over a four-year period.
The first installment of $25 million is due on receipt of
operational works approval which is expected to occur in the March
08 quarter.
Devine acquired the site for $27 million in September 2003. The
proposed prestige lifestyle development will feature a total of 527
up market homes and villas. Central to the estate's design is the
creation of an expansive 16-hectare lake, overlooked by a village
centre.
Devine's founder and Managing Director, David Devine, said
shareholders would benefit from the early profit delivered by the
sale, enabling the company to fasttrack its expansion plans along
Australia's east coast.
"Since Devine acquired the Currumbin site four years ago, we
have invested a significant amount of time, money and resources in
planning this environmentally sensitive development and securing
Development Approval," Mr Devine said.
"During the Council development approval phase we prepared 68
detailed reports and studies, which included 164 design drawings
and plans.
"We also worked closely with the Gold Coast City Council and
seven State Government departments.
"Final Development Approval was granted in November 2006. Since
then, the shortage of land on the Gold Coast, combined with the
region's continued population growth, has driven up land
values.
"The Gold Coast is one of the fastest growing areas in
Australia. Over the past decade the region has experienced growth
of approximately 70%, increasing the population from 356,000 in
1996 to 507,000 in 2006 (source: Gold Coast City
Council).
"Legislation constraints to future developments of this type in
the area have also added to the site's value."
Mr Devine said the company made the decision to put the prime
site on the market following a number of off-market approaches from
major developers.
"By doing so, we were able to secure the best outcome for
shareholders and generate an attractive return on our overall
investment in the site," Mr Devine said.
"Devine is an experienced property developer and buys and sells
when the opportunity arises. We have recently secured a number of
acquisitions as part of our disciplined diversification and
expansion strategy, frequently buying properties off-market in
structured transactions.
"This is part of our focus on building a pipeline of profitable
future projects that will deliver increased earnings commensurate
with the increase in shareholders' funds and shares on issue.
"The sale of Hideaway @ Currumbin will enable us to concentrate
our efforts on other planned developments such as Hamilton Harbour
on Brisbane's inner northern fringe, as well as various commercial,
residential and hotel projects in the Brisbane CBD."
Mr Devine said the company would continue to investigate future
development opportunities on the Gold Coast.
The sale was coordinated by sole agent Andrew King, Joint Managing
Director of DTZ in Brisbane, via expressions of interest which
closed on 13 September 2007.
Mr King said the Hideaway @ Currumbin sale was one of the
largest in the Gold Coast's history.
"South-east Queensland's chronic undersupply of residential
land, combined with the site's rare natural location, created
strong demand for this project," Mr King said.
On 8 November Devine announced a one-for five renounceable
rights issue to raise $62.5 million to capitalise on future
residential land and property development opportunities.
Mr Devine said the funds from the rights issue would enable 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 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 07 3233 1402
Kathy Mac Dermott Rowland. 07 3229 4499 or 044 88 44 508