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11-05-2015, 10:35 PM
Australand to recycle assets
Su-Lin Tan
433 words
12 May 2015
The Australian Financial Review
AFNR
English
Copyright 2015. Fairfax Media Management Pty Limited.
Singapore-listed Frasers Centrepoint Limited plans to recycle the assets in its latest acquisition, Australian diversified property group, Australand's assets, into its real estate investment vehicle platforms.
Frasers said in a quarterly update on Monday it would also increase Australand's land bank through the acquisition of more development sites in Sydney, Melbourne and Brisbane.
"Our key goals for Australia is to maintain momentum in delivering development pipeline and focus on strategic review of Australia business," Frasers Centrepoint's group chief executive, Lim Ee Seng, said.
Frasers' strategic review for its assets, including those in Australand, was to optimise asset productivity through its REITs to "unlock and release capital from assets". The move would also strengthen its balance sheet through a decrease in gearing.
The group has already begun this strategy with its Singapore-listed Frasers Commercial Trust recently acquiring the 25-storey 31,920-sq m freehold office property at 357 Collins Street from Australand Property Holdings (Collins St No.1), a wholly-owned trust of Frasers Australand, last month.
The sale was still conditional on an approval from the Foreign Investment Review Board.
Mr Lim said the group would continue to expand residential development in Australia, particularly Sydney and Melbourne which had strong housing markets. "There will be strong activity in these areas in the next 12 to 18 months," Mr Lim said.
He said the focus for Australand would be on residential projects as yields on office and industrial assets tighten in Australia.
"We will be looking for more complex assets to unlock in Australia," Australand's chief executive, Bob Johnston said. "The focus will be on key cities, Sydney Melbourne and Brisbane and less in the Perth market."
He said Australand has tenders with the government for both residential and industrial developments.
The group also reported on Monday Australand was on track with its targets, having completed over 750 apartments in the first half of the 2014/15 year. It also released over 1200 land lots and apartments for sale in the same time, mainly in NSW and Victoria.
The Sydney developer has 1650 units planned for release in the next half of the year. Australand has unrecognised residential revenue of $S1.8 billion ($1.7 billion) at March 31.
It acquired land in Coorparoo, Queensland, with a potential for 366 units worth $S263 million ($250 million)
Australand also delivered five commercial and industrial facilities in the first half of the year worth $S121 million ($115 million) and has another 96,000 square metres of commercial & industrial development potential.
Fairfax Media Management Pty Limited
Document AFNR000020150511eb5c00013
Su-Lin Tan
433 words
12 May 2015
The Australian Financial Review
AFNR
English
Copyright 2015. Fairfax Media Management Pty Limited.
Singapore-listed Frasers Centrepoint Limited plans to recycle the assets in its latest acquisition, Australian diversified property group, Australand's assets, into its real estate investment vehicle platforms.
Frasers said in a quarterly update on Monday it would also increase Australand's land bank through the acquisition of more development sites in Sydney, Melbourne and Brisbane.
"Our key goals for Australia is to maintain momentum in delivering development pipeline and focus on strategic review of Australia business," Frasers Centrepoint's group chief executive, Lim Ee Seng, said.
Frasers' strategic review for its assets, including those in Australand, was to optimise asset productivity through its REITs to "unlock and release capital from assets". The move would also strengthen its balance sheet through a decrease in gearing.
The group has already begun this strategy with its Singapore-listed Frasers Commercial Trust recently acquiring the 25-storey 31,920-sq m freehold office property at 357 Collins Street from Australand Property Holdings (Collins St No.1), a wholly-owned trust of Frasers Australand, last month.
The sale was still conditional on an approval from the Foreign Investment Review Board.
Mr Lim said the group would continue to expand residential development in Australia, particularly Sydney and Melbourne which had strong housing markets. "There will be strong activity in these areas in the next 12 to 18 months," Mr Lim said.
He said the focus for Australand would be on residential projects as yields on office and industrial assets tighten in Australia.
"We will be looking for more complex assets to unlock in Australia," Australand's chief executive, Bob Johnston said. "The focus will be on key cities, Sydney Melbourne and Brisbane and less in the Perth market."
He said Australand has tenders with the government for both residential and industrial developments.
The group also reported on Monday Australand was on track with its targets, having completed over 750 apartments in the first half of the 2014/15 year. It also released over 1200 land lots and apartments for sale in the same time, mainly in NSW and Victoria.
The Sydney developer has 1650 units planned for release in the next half of the year. Australand has unrecognised residential revenue of $S1.8 billion ($1.7 billion) at March 31.
It acquired land in Coorparoo, Queensland, with a potential for 366 units worth $S263 million ($250 million)
Australand also delivered five commercial and industrial facilities in the first half of the year worth $S121 million ($115 million) and has another 96,000 square metres of commercial & industrial development potential.
Fairfax Media Management Pty Limited
Document AFNR000020150511eb5c00013