This article is from the Australian Property Journal archive
ARIADNE has sold its 50% shareholding in the Viridian Noosa Trust to Macquarie Bank's real estate business for $27.15 million.
The Viridian Noosa Trust is the joint venture company founded in 1998 between Ariadne and Leighton Properties to develop the Viridian Noosa resort on Queensland’s Sunshine Coast.
The Viridian Noosa Resort and Spa comprises 153 units, plus 39 villas, apartments and penthouses, as well as central, conference and recreational facilities.
The sale will generate a modest surplus over the book value for the Stage 3 land and development costs incurred to date. The seven hectare Stage 3 site will contain the Viridian Noosa Resort and Spa development.
Ariadne and Leighton successfully completed the first two stages of the development – eight stand-alone houses and 23 residences in 2005. Stage 1 and 2 were an outstanding success for the developers, with the Viridian Residences winning the Urban Development Institute of Australia’s National Award for Excellence in the Medium Density sector.
Ariadne’s chief executive Murray Boyte said the development of Viridian had made significant profit contributions to Ariadne in FY04 and FY05.
“The sale of the Viridian Noosa shareholding substantially de-risks the Ariadne balance sheet.
“Ariadne will continue in property development, but will undertake transactions with a risk profile more suited to its balance sheet size… the preferred position would have been for Ariadne to retain a lower shareholding and some development role; however that is unrealistic for an asset of this type. It is appropriate that a new shareholder enter on a joint venture basis with Leighton,” he added.
In October 2006, Ariadne announced the sale of three properties – Morris Marina and Caravan Park, Portal Stage III (Newstead, Brisbane) and Stage III of Element on Coolum, which comprised a vacant development site on Queensland’s Sunshine Coast All conditions on the sale of these properties are expected to be completed by 30 June 2007.
“The sale of these properties will realise cash proceeds of around $50 million (inclusive of the Viridian Noosa Trust shareholding) and contribute to profit in both 2007 and 2008 financial years.
“The reconfiguration of the property portfolio will allow Ariadne to continue to capitalise upon future acquisition opportunities in the marketplace,” Boyte said.
Ariadne is now focused on increasing its activity within the marina sector.
This transaction is conditional and expected to be completed by June 30, 2007.
Australian Property Journal
