Mov­ing to Syd­ney

Prop­erty group branches into up­scale re­tire­ment mar­ket

Townsville Bulletin - - Stockwatch Business -

FKP Prop­erty Group has ac­quired an up-mar­ket Syd­ney re­tire­ment vil­lage port­fo­lio from Cbus Prop­erty Group for about $220 mil­lion.

The port­fo­lio com­prises about 600 units — some to be com­pleted be­fore set­tle­ment on April 30 — in three vil­lages on Syd­ney’s North Shore — two in Bayview and one in Lind­field.

The ex­act pur­chase price is yet to be de­ter­mined, but it’s ex­pected to be be­tween $200 mil­lion and $220 mil­lion, af­ter fac­tor­ing in trad­ing ac­tiv­ity and in­ven­tory move­ments be­tween now and set­tle­ment.

Bris­bane-based com­pany chief fi­nan­cial of­fi­cer Dar­ryl Gui­hot said FKP had be­ing look­ing to pur­chase in Syd­ney, an area it felt was lack­ing in its port­fo­lio.

‘‘We’re the largest re­tire­ment v i l l a g e o w n e r - op­er­a­tor in the coun­try, and it’s par­tic­u­larly pleas­ing to now be in Syd­ney,’’ he said.

‘ ‘ W e w e r e u n d e r - rep­re­sented there and now we’re pleased to have the op­por­tu­nity to tackle that mar­ket.’’

The ac­qui­si­tion is ex­pected to be com­pleted to­wards the end of this fis­cal year and will have a min­i­mal im­pact on earn­ings in 2006/07.

It is ex­pected to be earn­ings ac­cre­tive af­ter that.

De­vel­oper FKP owns 45 vil­lages around Aus­tralia, ex­cept in WA, and a fur­ther 1 7 c o - m a n a g e d w i t h Mac­quarie Bank Ltd.

Col­lec­tively, FKP and Re­tire­ment Vil­lages Group — a j o i n t v e n t u r e w i t h Mac­quarie Bank — have 2000 units in early de­vel­op­ment plans.

Last week, RVG pur­chased two vil­lages in Mos­man and one each in St Ives and Avalon.

Mr Gui­hot said FKP would con­tinue to ac­tively look to pur­chase more vil­lages in Syd­ney and around the rest of Aus­tralia, with no spe­cific projects planned.

FKP chief fi­nan­cial of­fi­cer Dar­ryl Gui­hot

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