BANKS are finally starting to show an interest in financing high rise projects, according to Gold Coast developer Sunland Group which today announced a net profit of $13.6 million for 2013.
“Sentiment has shifted particularly in the last 12 months,” says Sunland’s managing director Sahba Abedian (pictured).
He says this has led to a growing appetite for larger-scale projects, particularly in the developments Sunland has in train.
“(Banks) are showing some great interest in the projects that we have,” the Sunland boss tells Gold Coast Business News.
“The projects we are wishing to undertake are quite unique, not only in location but in their design aesthetics.”
These projects include the Abian tower in Brisbane, which is due to be launched early next year, and the proposed redevelopment of Mariner’s Cove on the Gold Coast, details of which Sunland has kept firmly under wraps.
Abedian has previously told Gold Coast Business News that Mariner’s Cove will be a landmark development that will thrust the Gold Coast on the international stage.
Sunland’s full-year result, down from $14.49 million in 2012, has been boosted by $6.2 million through a one-off tax benefit from the sale of the Palazzo Versace in December last year.
This helped offset lower sales volumes during the year.
The $13.6 million profit was delivered on a 10.2 per cent fall in revenue to $189.3 million.
The revenue drop was partly attributed to Sunland’s sale of the Palazzo Versace.
However, in a sign that construction activity has started to lift, the group has boosted revenue from project services by almost 80 per cent.
Sunland has a $1.4 billion in development projects in the pipeline across Queensland, NSW and Victoria, totalling 3262 products.
The company achieved 206 property sales and 401 settlements during the period, down from 503 sales and 552 settlements the previous year.
As promised earlier this year, Sunland has declared a final dividend of 2c a share, marking a return of regular payouts to shareholders after it delivered a special 2c interim payout earlier this year from the proceeds of the Palazzo Versace sale.
Sunland, which has undrawn credit lines of $105.2 million, has added to its development portfolio with $44.6 million in site acquisitions during the year.
Sunland still retains three development sites in Dubai which remain inactive and account for a negative $6.3 million in the company’s books – or minus 3c a share.
Sunland’s net tangible assets rose to $1.87 a share, up 73c over the past four years through the company’s share buyback scheme.
The NTA is up from $1.79 a year ago.
The buyback has seen the number of Sunland shares on issue fall from 323.6 million to 178.4 million.
Sunland shares traded as high as $1.52 today.
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