Sunland reaps big payday on projects
DEVELOPER Sunland has massively boosted its firsthalf profit thanks to strong revenue generated from settlements at its Gold Coast and Brisbane projects.
The Brisbane-based company said its 1H18 net profit was $20.7 million – a 314 per cent increase on the first-half of FY17.
Revenue from settlements at projects, including Magnoli Residences at Palm Beach, jumped from $95.4 million to $191.6 million.
Sunland managing director
Sahba Abedian said the company’s capital management strategy had put it on a sound footing.
“During 1H18 we have significantly reduced our gearing and our debt structures remain aligned to suit the capital requirements of Sunland’s residential housing and multi-storey portfolio,” Mr Abedian said.
Mr Abedian said strong cashflow generated from the settlement of residential projects, in addition to a diversified income stream from retail assets, would assist in the delivery and replenishment of the portfolio.
“Sunland’s conservative approach enables us to acquire and deliver strategic sites at opportune stages in the cycle, and release premium projects that best meet the needs of the evolving marketplace,” he said.
Sunland plans to launch up to six new projects during the second half of FY18.
They include the luxury 44-storey 272 Hedges Avenue residential tower in Mermaid Beach.
Mr Abedian said Sunland was “very confident” about underlying demand for units in the project.
“We have not released pricing as yet but it will be in excess of $10,000sq m,” he said.
“It is hard to compare it to other projects because we have not undertaken a major tower on the Gold Coast in many years. I think one thing to consider is Hedges Ave is one of the most exclusive streets on the Gold Coast. These units will have uninterrupted views across the park at Broadbeach to the beach and ocean, south to Coolangatta, and north to Surfers Paradise.”
Sunland’s portfolio was comprised of 5138 residential housing, urban development, and multi-storey products and an emerging retail portfolio, with a total end value of $3.9 billion.
It declared an interim dividend of 5¢ per share fully franked and reconfirmed fullyear earnings guidance of $27 million to $30 million.