Living units and serviced apartments sales in the Retired Established Business division totalled 494 in FY14 to date, a 15 per cent increase in settlements compared to this time last year.CEO Geoff Grady (pictured) says it shows that the decision to rationalise non-retirement assets is paying off.
“We are very pleased with the continued strength of our residential portfolio sell-down.“On settlement, these sales will see the realisation of a very significant decrease in the Residential Communities and Apartments balances, which at 31 December 2013 totalled $326 million and $170 million respectively,” he says.
Residential Communities and Apartments contracts for FY14 have increased 68 per cent to $426 million.It follows solid performance from land estates, including Rochedale in Brisbane and Peregian/Ridges on the Sunshine Coast.
“On current rates of sale we would also expect Rochedale to be fully sold in three to four years and Peregian/Ridges to be fully sold in four to five years.“While we continue to talk to interested parties, even if an en-globo sale of one or more of the land banks were not to eventuate, we would still see the majority of the Residential Communities balance of $326 million realised by the end of FY16.”
AOG has confirmed its underlying profit guidance remains up on FY13 results.
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