This article is from the Australian Property Journal archive
Axiom Properties has seen the value of its Port Geographe land sub-division doubled, from $25 million in a previous valuation to $50.
Axiom owns a 40 % interest in the Port Geographe joint venture, which is developing approximately 621 new residential lots at Port Geographe, near Busselton in Western Australia.
An updated independent valuation has been carried out on the land being developed by the PGJV.
The valuation is based upon a number of assumptions including the future sales prices for lots, the rate of lot sales and development costs.
The effect of the revaluation of the land, if it were to be reflected in the book value of Axiom’s investment in the PGJV would be to increase the book value from $10.4 million at 30 June 2005 to $23 million, an increase of 121%.
Based upon the abovementioned increase in book value Axiom’s NTA per share would increase from 1.02c at 30 June 2005 to 8.32c.
By Kathryn O’Meara
