This article is from the Australian Property Journal archive
RESIDENTIAL developer GEO Property Group has moved quickly to buy out its joint-venture partner in the $130 million Little Creek residential community at Gladstone.
GEO Property Group entered into a joint venture agreement with BOS International to develop the Little Creek site in February 2008. The project is scheduled for completion in 2014 and is expected to eventually accommodate 640 sites and become home to more than 600 families.
The project will be refinanced through BOS International with a new 3-year project-specific finance facility.
Managing director Guy Farrands said the transaction will give the company complete control of a 640-lot project.
“Owning 100% of Little Creek gives us greater exposure to the significant recovery that is currently taking place in the Gladstone property market while also giving us more flexibility in our management of the project.
“It also means we can employ our core speculative house building capability to further enhance our returns which was not possible under the joint venture arrangement,” he added.
The price of the acquisition was not disclosed.
Stages 1 and 2 of the development comprising 62 lots have already been released, with 54 homesites sold including 31 in the 2010 calendar year. Preliminary approval has been granted for stages 3-24, comprising a further 544 lots.
Australian Property Journal
