DEVINE SELLS APARTMENT MANAGEMENT RIGHTS

DEVINE SELLS APARTMENT MANAGEMENT RIGHTS
DEVINE'S (ASX: DVN) Brisbane apartment management rights have been acquired by diversified financial services company Spring FG (ASX: SFL), with expansion to Sydney and Melbourne penned as likely over time.

SFL has established a real estate asset management division and acquired the exclusive management rights at DVN's still in-construction Mode Apartments, where 25 per cent of investor-owners are existing SFL clients.

The company will provide property asset management, letting agency and resale services to DVN's existing and new clients, and investor-owners, as well as building management services to bodies corporate.

A sum of $1.88 million is expected to be paid for the rights inclusive of $210,000 for a commercial lot within the development from where it will operate its services.

SFL managing director Keith Cullen says the acquisition is a natural extension of his company's services.

"With our clients already holding residential investment property assets estimated in excess of $500 million, the physical management of real estate assets is a natural extension of our investment advice and portfolio management services," says Cullen.

"Our clients already hold around 500 residential investment properties in inner-Brisbane, within a readily serviceable radius of Mode, so the acquisition of the management rights there provides an ideal hub from which to provide asset management and letting services across that entire asset pool.

"In addition to enabling end-to-end property advice and management service, the provision of physical asset management and letting services will provide stable recurring income that we expect to be a material contributor to revenue and profits into the future."

The acquisition will be funded by from SFL's balance sheet that currently holds more than $8 million in cash and receivables with zero debt.

The term is for 25 years. Mode is expected to be completed in mid-2016.

Pictured: DVN managing director David Keir


Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

The devastated boss of collapsed Gold Coast homebuilder Pivotal Hom...

EVENT to hit divestment target once $75m Rydges North Sydney sale completes

EVENT to hit divestment target once $75m Rydges North Sydney sale completes

Entertainment and leisure services provider EVENT Hospitality &...

St Baker affirms commitment to Novonix as he exits board to focus on new fund

St Baker affirms commitment to Novonix as he exits board to focus on new fund

Rich lister and power industry titan Trevor St Baker, the largest i...

Microba strikes up partnership with Midnight Health to deliver personalised health services

Microba strikes up partnership with Midnight Health to deliver personalised health services

After making its debut on the ASX in April, biotech company Microba...