This article is from the Australian Property Journal archive
FKP Property Group has sold part of the Saltwater Coast residential estate at Point Cook in Melbourne's west and a 50% interest in a Brisbane apartment project to PBD Developments for $46 million.
FKP has sold a 14 ha non-contiguous en-globo site, known as the Yang Land, for $18 million, progressively payable over 18 months. The site has approval for 266 residential lots.
The site is part of the Saltwater Coast masterplanned community, set on over 100 ha land area in Point Cook, 20 kms south-west of Melbourne’s CBD. Following the sale, FKP will have over 1,100 lots to be developed at the estate. FKP recorded a $63.7 million impairment from the project in FY2013.
FKP has also sold a 50% interest in The Milton in Brisbane for $28 million. The project has an estimated end value of $200 million and comprises 309 residential apartments and 2,400 sqm of commercial and retail space. So far, over 70% of the apartments have been pre-sold and construction is on track to be completed in September 2015.
FKP CEO Geoff Grady said the sales are another progression in the group’s strategy to become a pure retirement group.
“Both sales are above book value. FKP will continue to divest non-retirement assets such as these at or around book value as we continue to execute this strategy,” he added.
Last month FKP sold an office building at 399 Lonsdale St in Melbourne’s CBD for $31.5 million.
FKP and PBD no longer have an association after FKP sold its 23.6% stake in August to Mulpha Group and on the market at $0.01 per share, valued at $7.9 million.
FKP made a strategic purchase, buying a 29.5% stake, in the Perth-based developer in May 2010, spending $23 million to buy 175 million shares at $0.13 per share as part of a capital raising undertaken by PBD to raise $60.2 million. The price represented a 42% discount to PBD’s net tangible assets.
PBD CEO Jally Lin said the acquisitions are in line with the company’s strategy to diversify and expand its development pipeline on Australia’s eastern seaboard.
Property Review
