This article is from the Australian Property Journal archive
Diversified property group Australand has sold its residential property management portfolio to Wentworth Holdings.
Australand is believed to have sold the management business for in excess of $5 million – the company’s third largest acquisition to date.
The portfolio consists of in excess of 1200 residential properties over seven buildings in Sydney and Melbourne developed and sold by Australand over the last five to six years.
Wentworth Holdings’ executive director Kingsley Lamont said the acquisition will give the company immediate access to the prized residential property managements in Sydney City and surrounding inner city suburbs including Rushcutters Bay, Rozelle, Balmain, Wolli Creek and Chatswood.
“It also enhances the Group’s presence in Melbourne by increasing Wentworth’s inner city presence via Australand’s significant residential property management locations at Southbank and Abbotsford,” he added.
Lamont said the business will be a significant profit contributor which has been included in Wentworth’s previously announced earnings before interest, tax, depreciation and amortisation projection of $9 million for the 2006-2007 financial year.
The transaction is due to settle in early October 2006 and Wentworth has agreed to retain the Australand staff who have been involved in managing these properties.
Australand’s managing director Brendan Crotty said the sale is not expected to have a material impact on the group’s financial results for the year to June 30, 2006.
By Kathryn O’Meara
