SALES DOWN FOR AHC

SALES DOWN FOR AHC

AHC managing director Rod MacLeod is bewildered but trying to extract positives from the barrage of bureaucracy that has delayed his company’s residential and commercial projects on the Gold Coast.

The company has endured a three-year delay on its mixed-use Saltwater development at Helensvale, where 11 lots are still to sell in the latest stage after seven potential buyers forfeited deposits. Land lots averaging 600 sq m are selling for $230,000.

MacLeod says exorbitant PIP charges also resulted in the loss of sales on its 12 commercial lots within the project.

“Council concerns over a fence has cost us around $5 million in sales, interest and holding costs due to unnecessary delays,” he says.

“I don’t know why Gold Coast City Council would want to stone dead new investment in the region, but we want to move on now and focus our attention on completing our shopping centre at Gympie.”

MacLeod believes the $27 million project has the capacity to become ‘another jewel in the crown’ for the company, similar to its $35 million Worongary Shopping Centre.

“It’s almost a direct replica and it’s in line with our business model to build strong a cash flow base from the centre as we have been able to do with Worongary,” he says.

AHC bounced back from a disappointing result in FY10 to record a $384,382 net profit for the December half. It compares to losses of $208,000 on the corresponding period last year

The group sold its Caltex service station on Siganto Drive at Helensvale for $6.3 million, contributing to its return to profit despite a 53 per cent slide in revenue to $2.16 million.

AHC sales for the calendar year are down 42 per cent due to market conditions and delays for approvals on Saltwater and its 26ha Dundowran Industrial Subdivision at Hervey Bay.

The company’s head office is on a prime 200sqm site on Siganto Drive next to the M1.

AHC’s is not the only developer exiting the Gold Coast. Norm Rix is also planning to withdraw future plans with seven of his projects in dispute.

In the latest ‘bureaucracy gone mad’ debacle, Rix’s Upper Coomera project has been derailed as GCCC request that a large portion of the land ($1.2 million) be conserved for owl habitat where dead trees are standing.

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

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

Despite recent trading conditions proving disruptive for the reside...

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...

Carsales.com founders sell Melbourne office development for $60.25m

Carsales.com founders sell Melbourne office development for $60.25m

A Singapore-listed property trust managed by Frasers Property (SGX:...

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...