Coast prices drive Sunland ventures
DEVELOPER Sunland is set for a major expansion of its Gold Coast projects this financial year as it continues to bet on the buoyancy of the southeast Queensland property market.
The Brisbane-based company, which yesterday reported a full-year net profit of $35.3 million, has plans to launch six Gold Coast projects in FY18.
They include The Lanes retail precinct and Aer Residences at Mermaid Waters, a 40-storey tower at 272 Hedges
Ave, Mermaid Beach, Magnoli Apartments at Palm Beach, Greenmount Residences at Coolangatta and Arbour Residences at Pimpama.
Managing director Sahba Abedian said the affordability of property in southeast Queensland, including the Gold Coast, relative to Sydney
and Melbourne would continue to fuel demand on the Coast.
“We feel strongly southeast Queensland will be the great beneficiary of that price differential within the next 12 to 24 months,” he said.
Mr Abedian said the strong financial performance in FY17 was a result of an expansion of its luxury multistorey projects in Queensland. He singled out the Abian tower in Brisbane’s CBD as a major contributor to revenue, helping to increase the average sale price across its portfolio to $718,300.
The Marina Concourse development, two six-storey mid-rise towers adjacent to Royal Pines Marina in Benowa, was the other multistorey project selling in FY17.
Forty-three lots went under contract for a total of $31.4 million with construction due to finish in mid-2018.
“This move to the luxury multistorey sector has been balanced by the continuation of our conservative capital management strategy and share buyback program, which has enhanced earnings per share and contributed to net tangible asset per share growth.”
Sunland embarked on an acquisition spree in FY17, spending $65.5 million on five properties including $12 million on a Mermaid Beach site for its Hedges Ave tower and $32.5 million on two Greenmount sites.
Shares closed up 6.5¢ or 3.6 per cent at $1.83.