Devine Limited Half Year Results Presentation

Devine Limited Half Year Results Presentation
10 February 2010
Contents
#1
1.
Business Overview
#2
2.
Half Year Financial Highlights
#3
3.
Strategy and Market Opportunity
#4
4.
Capital Management
#5
5.
Appendix: Portfolio Overview
2
1. Business Overview
3
Devine’s Business Model
•
The Devine brand is one of Australia’s most trusted names in residential property – backed by over 26 years of
experience and over 18,000 homes built since listing in 1993
•
Devine has two business divisions with Housing and Land being the core focus, as well as the ancillary
Property Development business which will continue to pursue selected opportunities in medium and high
density residential developments
•
Devine is a leading Housing and Land business
•
•
1 The
2
-
Develops land for residential subdivision and medium density residential development
-
Sells individual land allotments to other home builders and individual buyers
-
Is a contract home builder for individual buyers, primarily on Devine’s land estates
The “integrated developer” business model is a competitive advantage. The model provides Devine with the
flexibility to offer:
-
House and land “packages” (where the customer buys and pays for a land allotment from Devine
Communities and enters into a progress claim1 building contract with Devine Homes2)
-
Land-only sales (to other builders and individuals)
-
Government-sponsored social housing projects is a potential growth market
Devine’s housing estates are located in key growth corridors in major capital cities; Melbourne, Brisbane and
Adelaide
customers make progressive instalment payments to Devine Homes at different stages of construction.
Refer to slide 30 for a business description.
4
Devine’s Competitive Advantage
• The “integrated developer” model provides a competitive advantage
-
Underpins Devine’s profit margin and market share through a diversified product offering
and by targeting a number of buyer segments
-
Provides flexibility to take advantage of changing market conditions and opportunities
-
Enables the efficient and seamless development of land and home construction –
providing end-to-end delivery
-
Gives Devine greater access to the affordable housing market, for example, first-home
buyers
• Devine’s land bank is largely “market-ready” – planning and development
approved and zoned for residential development
-
Devine does not focus on unzoned broadacre land – where there is a long lead time
between the acquisition of land and home sales. Furthermore, the number of lots yielded
by unzoned broadacre land and the timing of various approvals/zoning can be highly
uncertain
-
Devine has a proven track record of optimum and efficient development approvals and
maximising lot yields from its land acquisitions
5
Devine’s Competitive Advantage
(cont.)
• Leighton is Devine’s major shareholder and in addition its Leighton Properties
division is a partner in two joint-venture projects
-
Provides complementary expertise, experience and capital for joint projects, such as
Hamilton Harbour
• Following a review of its business strategy in October 2009, Devine will be
focused on residential land and housing development which Devine believes
produces more predictable cashflows and earnings
• Unlike other companies in the residential market, Devine does not:
-
Develop to hold property assets for rental revenue
-
Engage in funds management or the sale/distribution of financial products
-
Typically build “spec homes”, which are built to generic specifications and then sold once
built (instead, Devine typically constructs project homes from its standard range of
designs with a home building contract requiring the payment of progress claims to
Devine)
6
Overview and History
• Devine is a leading Australian home builder
and residential land and property developer
offering affordable housing products in
Queensland, Victoria and South Australia
-
Since listing on the ASX in 1993, it has
grown to become one of Australia’s
foremost home builders and residential
developers
• Devine’s core competencies include concept
design, product design, marketing and
project management. In home building, the
Company is the registered builder and subcontracts all construction work
• Devine has a current national pipeline of land
developments and projects which, when
completed and sold, are expected to have an
end value exceeding $2 billion
1981
Founded by David Devine
1993
Listed on the ASX
1996
1997
Establishes the Property Development Division in
QLD and commences the inaugural Cathedral
Place project, taking the Company into multi-storey
residential apartments
Acquires contract housing business Pioneer
Homes, giving the Company a greater product and
geographic base
Leighton Holdings makes a direct strategic
investment in Devine, taking a 40% stake
2007
2009
2010
Redefines strategy and refocuses towards
residential land development, home building and
medium and high density residential development
New CEO commences
Since listing in 1993 Devine has
built over 2,700 residential units
and 18,000 houses
7
New CEO Announced
• Following the announcement in October 2009 by Managing Director and founder of the Company, David
Devine, that he was going to step down, Mr David Keir was appointed as Devine’s new CEO on 1
February 2010
- Mr Keir will commence on 1 March 2010, with Acting CEO Viv Grayson holding the position until Mr
Keir’s commencement
• Mr Keir is the former Delfin Lend Lease CEO and has over 20 years experience in the urban
development industry, including 6 years in various town planning roles
- During his time with Delfin, Mr Keir held a variety of roles including Chief Operating Officer, General
Manger Built Form, Operations Manager for Queensland and the Northern Territory and Project
Director
- Mr Keir holds a Bachelor of Applied Science, Built Environment from the Queensland University of
Technology and holds a number of post graduate qualifications. He is a member of the Australian
Institute of Company Directors and a Board Member of the Residential Development Council of
Australia.
• Mr Keir’s appointment reinforces the Company’s strategic focus on the Housing and Land business
• Devine’s CFO, Mr Paul Cochrane, and the newly appointed CEO have an established professional
relationship through over 5 years working together at Delfin Lend Lease
8
Other Board and Management Changes
Recent Senior
Management
Changes
•
Luke Hartman was promoted to National General Manager of Housing and Land in
July 2009
•
In October 2009, Devine announced the appointment of a new CFO, Paul Cochrane,
who has over 20 years of finance and senior management experience with major
companies include PriceWaterhouseCoopers and Delfin Lend Lease
•
Viv Grayson will return to his role as Company Secretary and assist in the transition of
David Keir to his new role
•
Marketing Director Ken Woodley has advised that he will cease employment after a
period of transition with the new CEO
-
Board Changes
An orderly transition to either an internal or external replacement will be facilitated
•
David Devine remains on the Board as a non-executive director
•
Ken Woodley will step down from his position on the Board
•
The Board’s intention is to maintain the current number of Directors
9
Structure Diagram
Board of Directors
Management Team –
CEO, CFO, Company Secretary, Marketing Director, National GM Housing and Land, GM Property Development
HR and
Secretarial
Accounting,
Finance and IT
Development
Construction
SA
VIC
QLD
Corporate
Property Development
Housing and Land
10
Business Snapshot
KEY EXECUTIVES
PROFILE
Head Office
Brisbane
Areas of
Operations
Queensland, Victoria, South Australia
Employees
257
Operations
Contract home builder, residential land developer, property developer,
construction division
ASX DETAILS
Appointed CEO
David Keir
Acting CEO & Company Secretary
Viv Grayson
CFO
Paul Cochrane
National GM – Housing & Land
Luke Hartman
Marketing Director
Ken Woodley
Manager – Property Development
Terry Conway
National Manager – Commercial
Jim Watson
Listed
November 1993
Manager – Devine Constructions
John Kerr
Total Shares on issue
315.5 million
General Manger – South Australia
Steve Weightman
Market Capitalisation
$128 million (as at 9 February 2010)
Share Price on 9 February 2010
(52-week high / low)
DIRECTORS
40.5 cents (62 cents / 37.5 cents)
LARGEST SHAREHOLDERS
HOLDING
Mr Doug Ridley
Non-Executive Chairman
Mr David H.T Devine
Non-Executive Director
Mr Peter J Ferris AM, KCSG
Non-Executive Director
Leighton Holdings
43.7%
Hon. Terry Mackenroth
Non-Executive Director
Devine Industries Pty Ltd (David Devine – former Managing Director)
10.6%
Mr Graeme E McOrist
Non-Executive Director
Larrapinta Pty Ltd (Ken Woodley – Marketing Director)
3.4%
Mr Richard (Rick) W Parris
Non-Executive Director
Dimensional Fund Advisors
2.1%
Mr Vyril A Vella
Non-Executive Director
Mr Kenneth (Ken) M Woodley
Executive Director
11
2. Half Year Financial Highlights
12
Overview
Housing and Land
•
Outstanding performance in 1H 2010 – 38% revenue growth and 162% growth in underlying profit1 before tax compared to 1H 2009
•
Restructured management in July 2009 with Luke Hartman promoted to National General Manager
•
A strong level of deposits received in 1H 2010 will flow through to increased activity and site starts in 2H 2010
•
Margins improved compared to 1H 2009, driven by price increases in Victoria and underpinned by nation-wide housing shortages
Property Development
•
Following the success of the first stage with over 90% of units sold, the second residential tower of Hamilton Harbour has been launched
•
Construction of the Company’s serviced apartment hotel in Bourke Street, Melbourne, is well ahead of schedule and within budget with
majority of profits having been recognised as at 31 December 2009
•
Transitioning away from commercial and large-scale property developments
-
Sold Carrington2 site for $25 million in December 2009
-
Sold 50% interest in King George Central (145 Ann St) in December 2009
-
Settled 96 Albert Street in December 2009
-
Recognised $13.2 million of one-off charges, including impairments (on a post-tax basis)
Devine Constructions
•
Awarded tenders for two schools projects as part of the Federal Government’s Building the Education Revolution programme
Financial
•
Growth in underlying profit1 after tax of 24% compared to 1H 2009
•
Significantly reduced debt
•
Negotiated the extension of several bank facilities during the period and the renegotiation of the core debt facility is well progressed
•
Devine’s financiers remain supportive of the refocused strategy and the underlying strengths of the business
1 Underlying
profit is profit excluding the one-off items described on slide 18.
Forms part of the previously proposed French Quarter development which includes Carrington, which was sold and settled in December 2009, and the adjoining Camelot site
(an exit process is currently being considered).
2
13
Gearing
Devine significantly reduced its debt
Debt to Equity Ratio1
Gearing Ratio2
120%
52%
49%
100%
40%
70%
31-Dec-08
30-Jun-09
31-Dec-09
Note: Balance sheet debt does not include Devine’s share of JV debt.
debt to shareholders funds.
2 Gearing is defined as (interest bearing & non-interest bearing debt – cash held) / ( total assets – cash held).
1 Interest-bearing
31-Dec-08
30-Jun-09
31-Dec-09
14
Half Year Financial Highlights
$ millions
1H 2010
1H 2009
% Change
Revenue
304.4
197.9
53.8
Gross profit incl. other revenue but
excludes one-off items
78.0
69.7
11.9
Expenses excl. one-off items
(47.0)
(44.5)
Depreciation and amortisation
(0.3)
(0.5)
Equity accounted (profits)/losses
(0.9)
(0.4)
EBIT from underlying operations
29.8
24.3
Finance costs
(9.3)
(7.9)
Income tax expense on underlying
operations
(6.1)
(4.8)
NPAT from underlying operations
14.4
11.6
(13.2)
-
1.2
11.6
Basic EPS
0.4 cents
4.0 cents
Diluted EPS
0.4 cents
4.0 cents
One-off items1
NPAT
22.5
24.0
(89.9)
1 Includes gains or losses on the sale of projects including King George Central (145 Ann St), 96 Albert St and Carrington site, as well as impairments on large-scale and commercial property development
assets – all shown on a post-tax basis.
15
Balance Sheet Summary
$ millions
31 December 2009
31 December 2008
1.2
15.6
- Receivables
59.6
71.1
- Inventories
452.8
581.7
- Other
45.5
55.2
Total Assets
559.0
723.6
Liabilities - Trade and other payables
57.8
65.3
- Interest bearing
190.2
308.3
- Non-interest bearing
31.6
68.0
- Other
12.9
24.0
Total Liabilities
292.5
465.6
Net assets/shareholders funds
266.5
258.0
Net Tangible Assets (NTA)
263.2
240.9
Gearing1
39.5%
51.9%
83.4 cents
82.1 cents
Assets - Cash
NTA per share
1
Gearing is defined as (interest bearing & non-interest bearing debt – cash held) / ( total assets – cash held).
16
Half Year Divisional Results
$ millions
1H FY2010
1H FY2009
Revenue
% Change
~0%
Housing and Land
Revenue
Underlying profit before tax
201.8
17.0
146.3
6.5
38.0
Housing and
Land
33%
Property
Development
67%
162.3
Other
Property Development
Revenue
101.3
49.7
103.9
Underlying1 Profit Before Tax (PBT)
Underlying1 profit before tax
5.0
12.3
(59.8)
17.0
Corporate/Other
Revenue
Underlying profit / (loss) before tax
5.0
1.4
2.0
(30.5)
(1.5)
(2.4)
40.1
Housing and
Land
1
Excluding one-off items. Refer to slide 18 for further details.
20.5
1.5
Property
Development
Other
Underlying
PBT
17
One-off Items
• As part of the half year-end process and preparation of half year accounts, Devine reviewed and
tested all assets for impairment
• No impairments were considered necessary in the Housing and Land business
• Following the Company’s decision to increase focus on the Housing and Land business,
impairments were recognised in relation to Devine’s remaining Property Development assets
-
These impairments represent approximately 15% of the non-Housing and Land inventory and
investments
-
Net one-off items for the Property Development business, including impairments on remaining
sites to be exited and gains/losses on exiting 145 Ann St, 96 Albert St and Carrington was
approximately $18.8 million pre-tax, or $13.2 million post-tax
18
Net Tangible Assets
•
NTA per share at 31 December 2009 was 83 cents
•
The majority of Devine’s balance sheet is invested in Housing and Land assets
Gross Asset Value
NTA1 per Share
5%
4 cents
+ 11 cents
15%
+ 68 cents
80%
= 83 cents NTA
Housing and Land
1
2
Property Development
Corporate/Other²
NTA is allocated to business units based on relative gross asset values with debt facilities assumed to be managed centrally. All values as at 31 December 2009. For illustrative purposes only.
Includes receivables managed by corporate (not Housing and Land or Property Developments).
19
3. Strategy and Market Opportunity
Devine announced in October 2009 that Housing and Land will be the core focus and the
ancillary Property Development business will continue to pursue selected opportunities in
medium and high density residential developments.
20
Refocused Strategy
What does it mean for Devine?
Previous Strategy
•
To pursue a wide range of opportunities in the real estate
Current Strategy
•
sector, including:
–
Large scale property development, such as the French
Quarter
–
Commercial developments, such as King George Central
•
(145 Ann St)
–
Mixed-use precincts that include residential, commercial and
retail components
–
Construction of Devine’s large-scale commercial
developments and medium to high density residential projects
–
Property management and body corporate services through
SSKB
–
•
•
•
Traditional housing and land business
The Housing and Land division services the Queensland,
Victorian and South Australian markets
•
•
•
•
Leverage Devine’s competitive advantage in developing housing
and land projects, with a focus on:
–
First home buyers
–
First and second time move-up buyers
–
Investors
–
Sale of land to other builders
Refocus the business away from large-scale and commercial
developments
–
Release capital tied-up in large, single projects
–
Increase the predictability of cashflows and earnings
–
Sale of King George Central (145 Ann St) and Carrington;
exit process is being considered for Camelot
Continue to seek opportunities in the medium and high density
residential space, for example, the successful Hamilton Harbour
development
Continue to build and develop lots through a mix of wholly-owned
estates, joint ventures, deferred settlement contracts and purchase
options
Increase presence in higher growth states like Victoria
Opportunistically re-enter the NSW residential market in the
medium to high density sector
Pursue selected opportunities in the Devine Constructions
business (eg. recent work as part of the Building the Education
Revolution school works programme)
Exit property management and body corporate services (sale of
SSKB completed in August 2009)
21
Housing and Land Refocus
• Devine has carried out a detailed strategic review of
its business
• The Board together with management has decided to
refocus the business on Housing and Land projects
to enhance shareholder value and allow Devine to
take advantage of favourable market conditions in the
residential sector over the coming years where it has
a long and established track record
–
–
–
Access to affordable debt capital for large-scale and
commercial development projects has diminished
Devine’s core competitive advantage is in developing
residential projects, where the capital demand is lower
Increase the predictability of cashflows and earnings
• A focus on the Housing and Land division will allow
Devine to pursue growth opportunities, such as
–
–
–
Taking advantage of a shortage in affordable housing and
favourable supply / demand dynamics, which are
expected to remain in place over the medium to long-term
Increasing its presence in the higher-growth Victorian
market and re-establishing a presence in NSW
Selected medium and high density residential or mixeduse developments where Devine has a competitive
advantage
12,000
Total Lots Under Control
Strategic growth
target of ~10,000
lots
10,000
8,000
6,000
4,000
2,000
0
FY03
FY05
FY07
FY09
FY12
22
Robust Demand for Housing and Land
•
Demand is underpinned by favourable demographic, macroeconomic and public policy dynamics
-
Strong population growth: 2.1% in the year to 30 June 2009 driven by net migration (contributing to 64% of the gain)
and total fertility rates at a 30 year high
-
Net migration of 230,000 expected in FY10 (vs. 285,000 in FY09)
-
Low levels of unemployment and robust economic growth contributing to the demand factors
-
Government incentives for first-home-owners of up to $18,000 are still available in some states until 30 June 2010
-
Affordability1 has declined from recent highs but is still 35.7% above September 2008 levels
-
Social housing initiatives are creating additional demand pressures:
-
Up to 19,200 new dwellings to be built, with only ~2,300 dwellings commenced to date
-
Program to run until 2012, with $5.2 billion of funds allocated under the Federal Government’s Nation Building Plan
Population Growth
3.0%
Victoria
Queensland
Unemployment
South Australia
2.14%
2.07%
2.0%
6.5%
10 year average = 5.6%
5.5%
1.5%
1.21%
1.0%
2004–05
2005–06
2006–07
2007–08
Source: Australian Bureau of Statistics, Bloomberg, Housing Industry Association
1
Consensus Forecast
2.63%
2.5%
0.5%
2003–04
Unemployment Rate (%)
7.5%
National
Housing Industry Association Affordability Index
2008–09
4.5%
3.5%
Dec-99
Dec-01
Dec-03
Dec-05
Dec-07
Dec-09
Source: Australian Bureau of Statistics, Bloomberg, Housing Industry Association
Dec-11
23
Favourable Market Conditions
Land shortages continue to constrain supply and
underpin prices
•
•
There is a chronic under-supply of developmentapproved land
Australia is expected to experience an increasing
shortage of dwellings as demand is forecast to outstrip
supply by approximately 24,000 lots per year
favourable demographic, macroeconomic and
policy trends are likely to continue
Several years of ‘catch-up’ will be required as a result
of built-up undersupply
-
Recent government policy initiatives will take
some time to impact the supply of zoned,
approved lots
Developers with market-ready land and a flexible
product delivery capability will benefit the most
316,000
The shortage is
expected to grow
between now and
2018
300,000
Delays in planning approvals, rezoning and difficulty
securing finance is exacerbating shortages of
approved land in metropolitan growth areas
•
350,000
250,000
203,000
Dwellings
•
Forecast Cumulative Gap between Dwelling
Demand and Supply
200,000
179,000
155,000
150,000
131,000
108,000
100,000
50,000
0
FY09
FY10
FY11
FY12
FY13
FY18
Source: National Supply Council (annual State of Supply Report 2009).
24
Devine is Well Placed to take
Advantage of this Opportunity
• Devine’s is an “integrated developer”
-
Experienced in home building, land development and sales and “house and land”
packages
-
Flexibility to tailor products to suit different markets (eg. first-home buyers, investment
buyers, social housing etc.)
-
Ability to deliver an efficient and seamless development of land and home constructions
-
Strong position to tender for social housing work
• The majority of Devine’s lots are approved for development and “market-ready”
-
Lots are ready to develop and build on, and are located in key growth areas
-
Devine’s growth strategy is focused on the acquisition and delivery of lots in key growth
corridors
25
Housing and Land Division
Business Performance
•
•
•
Devine has a proven track-record of delivering lots to market and building homes on both its own land bank and other developers’ land
-
Sales volumes have increased considerably in the last 2.5 years
-
Housing and Land margins remain strong
The Housing and Land business has strong momentum going into 2010
-
Devine has benefited from economies of scale as it brings a greater volume of land to market
-
1H 2010 saw strong levels of land deposits
Solid deposits in 1H 2010 will underpin revenues and cashflows in 2H 2010 as contracted lot sales are settled and house building
contracts signed in the first half are completed
12 months rolling Net Land Deposits
12 months rolling Housing Starts
+ 14%
+ 98%
2,296
962
2,179
927
872
1,551
1,364
1,171 1,193
950
Jun
07
1,274
1,623
888
871
827
1,159
923
930
Jun
09
Sep
09
846
725
1,036
662
Sep
07
Dec
07
Mar
08
Jun
08
Sep
08
Dec
08
Mar
09
Jun
09
Sep
09
Dec
09
Jun
07
Sep
07
Dec
07
Mar
08
Jun
08
Sep
08
Dec
08
Mar
09
Dec
09
26
Note: Net deposits represent gross deposits received from customers for the purchase of land lots less any cancellations. Housing starts refer to the number of lots where Devine has commenced building a house.
4. Capital Management
27
Capital Management Initiatives
•
•
Capital Structure
•
•
Debt Refinancing
•
•
Non-core Asset
Sales
•
•
•
Refocused
Strategy
1 Gearing
2
Devine has reduced its gearing1 from 52% to 40% over the 12 months to 31 December 2009
The Board is currently undertaking a review of Devine’s capital structure and the funding needs of the
business going forward
A range of capital management options are under consideration, including a potential equity raising
- If an equity raising is pursued, Devine would seek to conduct the offer in the best interests of all
shareholders and include in the offer structure a pro-rata offer to existing shareholders
Negotiations are ongoing for the extension of Devine’s $168 million core debt facility2 and the Board is
confident that these discussions will be concluded in the near future
A number of project specific facilities have been recently refinanced for a further 12 months
Devine’s financiers remain supportive of the refocused strategy and the underlying strengths of the
business
$65 million of asset sales to date, including SSKB, King George Central (145 Ann St) and Carrington
have reduced leverage and released capital
An exit process for Camelot is being considered
The execution of Devine’s Housing and Land refocus is well progressed, evidenced by recent asset
sales
Will lead to more predictable cash flows going forward and reduce the capital intensity of the
business
Capital recycling through sales in the Housing and Land division and the completion of projects
such as Hamilton Harbour
is defined as (interest bearing & non-interest bearing debt – cash held) / ( total assets – cash held).
Reduced from $180 million following the sale of Carrington.
28
Appendix: Portfolio Overview
29
Housing & Land
Devine Communities designs and develops
lifestyle residential communities and, in some
instances, offers house and land packages in
conjunction with other land developers.
For many of its estates, the Company marries
specific designs with particular allotments,
enabling buyers to enjoy homes that have
maximum harmony with the land and produce a
desirable streetscape.
Devine designers take into account the outlook,
solar orientation and most advantageous position
on the block when allocating home designs.
Devine Homes designs, markets and builds a
range of single and double storey homes to suit a
range of budgets. The division provides product to
meet the investor market as well as owner
occupier markets, specifically first home buyers in
Queensland, Victoria and South Australia.
Devine Homes’ competitive difference includes
fixed priced packages and attractive finance
options.
Devine Homes has won a range of awards
including one of the industry’s most prestigious
award at the 2009 Master Builders Association
Housing and Construction Awards.
30
Housing and Land Assets
Townsville
South Australia
South East Queensland
Victoria
Lots:
Lots:
1,210
Lots:
1
3,3301
2,400
Includes River Parks estate
Note: Total lot numbers represent equivalent lots when fully developed, owned or controlled, as at 31 Dec 2009.
31
Housing and Land Case Study:
Fallingwater JV – Pakenham, Victoria
PROJECT PROFILE
Location
Approx. 55 km SE of Melbourne CBD, Army Road, Pakenham
Size
Approx. 25 hectares
Homesites
365 lots
Project End Value
$110 million (including housing construction)
Gross Revenue of
Land
$49 million
Population
Approx. 1000 residents (at completion)
Product
Developer
Facilities
• House and Land packages, with a mixture of 3-4 bedroom homes
• Land-only sales
Devine Communities
• Ideally located near community centres, schools, an aquatic centre
and a golf course
• Shopping: nearby Fountain Gate and newly extended Pakenham
Shopping Centre
• Cafes, restaurants and entertainment areas
• Surrounding parklands and lush recreational areas
Fallingwater is a JV with Oracle Estates.
JV’s allow Devine to take advantage of its
experience and expertise in residential
development – within an efficient funding structure;
• Off balance sheet
• Devine often contributes <50% of the equity for a
greater share of the earnings
• Returns are generated through:
- The sale of house and land packages and
land-only sales
- A fee structure with the JV partner
For example, in the Fallingwater JV, Devine
receives a range of fees for managing the
planning, development, marketing and delivery of
the estate to market.
32
Housing and Land Case Study:
Arndell Park (100% owned) Truganina, Victoria
PROJECT PROFILE
Location
Approx. 20 km from Melbourne CBD on Forsyth Road, Truganina
Size
Approximately 55 hectares
Homesites
432 homesites
Project End Value
$160 million (including housing construction)
Gross Revenue of
Land
$80 million
Population
Approx. 1200 residents (at completion)
Product
• House and Land packages, with a mixture of 3-4 bedroom homes.
• Land-only sales
Developer
Devine Communities
Facilities
• Major shopping centre, Werribee Plaza, located nearby
• A school and childcare centre are on-site at Arndell Park
• Over $5 million Sports Pavillion and Community Complex
• Over $3 million outdoor sporting reserve
• Nearby off-road Federation Trail
• Sanctuary Lakes golf course is only 5 minutes drive away
33
Property Development Assets
Property developments
1
Hamilton Harbour, Brisbane, QLD (50% JV)
Type:
Residential / Commercial /
Retail
Status
90% of stage 1 apartments
pre-sold, stage 2 successfully
launched
2
Southbank, Townsville, QLD (50% JV)
Type:
Residential / Commercial /
Retail
Status
Planning approval progressing
to schedule
Non-Core developments
3
King George Central, Brisbane, QLD (50% JV)
Type:
Commercial Offices
Status
Sold and settled
4
96 Albert Street, Brisbane, QLD
Type:
Commercial
Status
Sold and settled
SOLD
SOLD
French Quarter, Brisbane, QLD
Type:
Residential/Mixed-use
Status
Carrington site sold and settled,
Y SOLD exit process being considered
PARTIALL
for Camelot site
5
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JV Project Overview
Hamilton Harbour
PROJECT PROFILE
Location
Hamilton, Brisbane
Site
2.1 ha
JV Partner
Leighton Properties Pty Ltd (50%)
Style
Mixed-use precinct with residential, office and retail components
Value
$475 million
Commencement
2nd quarter 2010
Est. Completion
Staged development over approximately 5 years
Hamilton Harbour is planned as a vibrant mixed-use community of apartment dwellers,
urban office workers, stylish showrooms, lively cafes and other retail outlets.
The project has received a positive response from both buyers and potential
tenants.
When complete, Hamilton Harbour will consist of 650 residential apartments,
approximately 18,500 square metres of prime green office space - PCA A-Grade and
Five Star Green Star rating and 6,000 square metres of retail and showroom facilities.
Bounded by Kingsford Smith Drive, Harbour Road and Hercules Street, the site is in
the heart of the Australia TradeCoast region next to Multiplex’s Portside Wharf and
cruise-ship terminal project and very accessible to Brisbane Airport, the Gateway
Motorway and the Brisbane CBD.
Artist’s impression.
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Disclaimer
This Presentation contains certain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “predict”, “plan” and other similar expressions are intended to identify forward-looking statements.
Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are
based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.
Forward-looking statements, including projections, guidance on future earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future
performance. This Presentation contains such statements that are subject to risk factors associated with the property development and construction industry. It is believed that the expectations reflected in these
statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to the following risks: development, planning and
construction, property market downturn risk, ‘bring-forward’ effect of and potential reduction or cessation of, the First Home Owner Grant, land bank valuation risk, joint ventures, documentation and completion,
increases in the unemployment rate, decreases in migration and risks associated with the adequacy of insurance and litigation, as well as earnings, capital expenditure, cash flow and capital structure risks and
general business risks.
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