This article is from the Australian Property Journal archive
INDIGO Group yesterday threw a positive line at Martha Cove, confirming the development projects it bought from troubled CP1 are doing well.
Martha Cove is a $650 million marina development at Safety Beach in Victoria being master developed by CP1. Indigo are the developers of 104 apartments and terrace homes and own the site for the main Martha Cove retail village.
Indigo’s managing director Mitch Nielsen said the company has only 20 apartments left in the apartment project and were confident of making further strong sales in the coming months.
In addition, 60 apartments and townhouses were completed late last year and Stage 2 is in the final stages of design. Stage 2 of Indigo’s involvement includes 44 luxury marina front apartments, and the main Martha Cove retail shopping precinct.
Prices in and around the development are already on the rise, with the median house price increasing 8% in the past six months. The price rise is in line with long term trend for 16% growth annually and five points above the Mornington Peninsula average which has a long term growth rate of 11% pa.
But CP1 is not so fortunate. Earlier this week, the company said it does not expect to make a net profit after tax for the FY08. CP1 posted a NPAT of $36.8 million in FY07.
CP1’s company secretary Lee Danahay said in past years, the company has achieved sales of land parcels at Martha Cove which generally settle in the last quarter of the financial year.
“Whilst the company has been pursuing a number of these transactions that if successful will in the board’s view produce appropriate returns for the company, it is now unlikely that any of these transactions will be completed on or before June 30 2008.
“On this basis, the board does not anticipate that the company will make a net profit after tax for the year ended June 30 2008,” he added.
Australian Property Journal
