AV Jennings

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COAST SURGE

WENDY HUGHES
272 words
4 Oct 2014
Courier Mail
COUMAI
English
© 2014 News Limited. All rights reserved.

WITH a land release surrounding its newly completed community park, AV Jennings’ Creekwood project at Caloundra is attracting a new surge of buyers from near and far.

Among them are Jean and Darrell McManus, who moved from England to be closer to their family. They took advantage of the $15,000 Great Start Grant to build their home, and are clearly smitten.

While the couple owned property in England, as first time Australian home buyers they were able to use the extra boost to build a two-bedroom home at Creekwood.

Mrs McManus said they had visited Australia several times before deciding on a sea change.

“Our daughter and her family live in nearby Little Mountain, and we fell in love with the area and its warm, sunny weather,” she said, adding that their new home was a world away from their previous abode.

“In England, we had a two-storey house in Leeds inland from the coastline – so it’s a welcome change for us to be close to the beach.” The McManuses chose a lot that backs on to the new community park, which has playground equipment, sporting facilities and lots of open space, perfect for when the grandchildren visit.

AVJennings Queensland state general manager Rod Chadwick said Creekwood had attracted a wide range of buyers in recent months, with new land releases selling quickly on the back of Creekwood Park’s completion.“Since we completed the community park and released new land surrounding it, there has been a sales rush from all types of buyers, including young families, couples, retirees and investors,” he said.


News Ltd.

Document COUMAI0020141002eaa40003a

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AVJ is always a good read on Aussie prop conditions:

http://www.avjennings.com.au/getdoc/863f...t2014.aspx

At the November 2012 AGM we told
shareholders we were starting to see
green shoots emerge in the important
New South Wales market and that we
saw an overall improvement in market
conditions ahead.
It is pleasing to now see those
forecasts, based on the experience of
our management team combined with
the lead indicators we have developed
over many years, now coming
through although we believe, barring
unforeseen events, there is further
improvement ahead.
However, even more pleasing is how
we have not just waited for improved
conditions to emerge. In recent years
we have been active in our strategies
and actions to manage short
term issues as well as position the
Company for the future.
The sale of our contract building
division just over 4 years ago is one
example. It was a brave and complex
decision. It represented a significant
revenue stream to the Company but
on analysing this business we believed
it did not achieve the types of returns
required. The sale itself took some
time to complete and the adjustments
required internally even longer. But
it has enabled us to now be a leaner
Company whose business model is
primarily focused on achieving results
from our strengths of developing great
communities whether that be from a
land development aspect or building
housing, town houses or apartments.
Accommodation is a basic need for
all Australians and we are proud we
can continue our heritage of providing
quality, affordable housing and great
places to live.
As developers of residential
communities, our staff take great
pride in the places we create. We
see the parks, waterways, wetlands,
playing fields, schools, public art and
many other amenities that emerge in
the communities we create. We see the
teams playing sport on our playing
fields or families spending time
together in our parks, couples going
for a walk on pathways we create,
children making new and lifelong
friends as they head off to school
at the start of a new year.
We also take great pride in ensuring
the communities we create become
part of the wider communities in which
our customers live.
And we will continue to invest in our
people, our brand and our products
to ensure we can continue to deliver
even better results for all stakeholders,
whether they be shareholders,
employees, customers or the wider
community.
As the current custodians of a
Company formed in 1932 we take
our responsibility to respect and
build on that legacy seriously.
Building on our past. Shaping
your future.
Peter Summers
Managing Director

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http://infopub.sgx.com/FileOpen/FinalAGM...eID=325637

AVJennings upbeat despite market challenges
AAP NOVEMBER 21, 2014 10:42AM

LAND and property developer AVJennings says challenges remain in some regional centres, but conditions in Australia are becoming “more favourable”.

Chief executive Peter Summers said he was confident about short- and long-term residential property market fundamentals.

“Challenges remain in some regional centres and the Adelaide market has been somewhat subdued for a few years,” he told shareholders today.

“But, overall, conditions are more favourable this year than at the time of this meeting last year and I believe they will be more favourable again when we meet again next year.”

Mr Summers pointed to guidance of 1500 to 1700 contract signings for 2015, compared to 1,415 for 2014, which he said “shows our confidence of improved outcomes”.

The company is also engaging in an acquisition strategy.

“Acquisitions take time, particularly when competition is high as is currently the case in many areas around Australia,” the chief executive said.

“To ensure we acquire land which is in the right locations, suits our business and meets our requirements for returns and risk profile, we need to investigate many opportunities.”

AVJennings (AVJ) made a net profit of $27 million in 2013/14, compared with a loss of $23.3 million during the previous financial year.


AAP

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AVJennings upbeat despite market challenges
AAP NOVEMBER 21, 2014 2:11PM

AVJENNINGS says Holden’s exit from local car making is hurting demand for homes in Adelaide.

The house and land packages group (AVJ) is expecting to sign up a higher number of new buyers nationally this financial year and says business conditions are better than a year ago.

It is also making new land acquisitions, including one in Adelaide.

But chief executive Peter Summers has some concerns about the South Australian capital, where Holden will stop making cars in 2017.

“It’s just going through some issues,” he told reporters.

“I’m confident when those sort of economic issues are addressed ... it will have its day in the sun.”

Murray Bridge, near Adelaide, is another weak spot, along with Coffs Harbour on the NSW mid-north coast and Mackay in Queensland.

“These regions, to varying degrees, are struggling a bit,” he said.

Mr Summers, however, was more positive about Sydney and the adjoining NSW Central Coast.

“As Sydney pricing gets more expensive, then people look for the next option which is the coast,” he said.

He told shareholders that nationally, housing conditions were more favourable this year compared with late 2013.

AVJennings has guidance of 1500 to 1700 contract signings for 2015, compared to 1,415 for 2014.

The company is also engaging in a land acquisition strategy, including a joint venture at St Clair in Adelaide.

AVJennings made a net profit of $27 million in 2013/14, compared with a loss of $23.3 million during the previous financial year.

Its shares were flat at 59 cents by 1pm (AEDT).


AAP

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Simon is not selling but expanding... his pockets are really deep should the deal comes through...

AVJennings poised for Devine intervention
• EDITED BY BRIDGET CARTER AND GRETCHEN FRIEMANN
• THE AUSTRALIAN
• DECEMBER 16, 2014 12:00AM
• Print
• Save for later
Gretchen Friemann

Mergers & Acquisitions Editor
Sydney

Devine and AVJennings. Source: TheAustralian
AVJENNINGS is shaping up as the most likely candidate to purchase the Queensland-based developer Devine, which is half-owned by Leighton Holdings, according to sources.
A sales process for the business has been under way through adviser Goldman Sachs since July, yet many in the market say progress has been slow.
Sources now say a deal could drag into next year, and some are tipping AVJennings to be the strongest contender.
Others say the race is still wide open and that it has not yet ¬entered any form of exclusive due diligence.
Leighton had intended to sell its half-share of Devine as part of its overall asset sale program, which some say was aimed at ¬securing $3 billion in overall proceeds to lift dividends and pay down debt. A decision was later made to sell the entire business.
Devine is expected to sell for close to 10 per cent below the company’s net tangible assets of $245 million.
AVJennings was among the first groups to have been approached to buy the business, along with Japan-based groups such as Sekisui House, and it is believed to have lodged a bid.
Proprium Capital Partners, an entity controlled by former Morgan Stanley real estate executives, has also taken a look.
But Singapore-based City Developments was later seen as the front-runner to purchase the developer along with Leighton Properties, which is also for sale.
However, CDL is now said to have retreated from both Devine and Leighton’s property arm, and Leighton Properties will now probably be purchased by the country’s largest listed residential developer, Stockland.

Vested
GG

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Housing boom lifts profit for developer AVJennings
Nick Lenaghan
388 words
10 Feb 2015
The Australian Financial Review
AFNR
English
Copyright 2015. Fairfax Media Management Pty Limited.

The booming housing market has propelled residential developer AVJennings to a bumper interim result, its net profit after tax rising 42.1 per cent to $11.9 million.

The Melbourne-based developer posted a profit before tax of $16.8 million, up 34.9 per cent. Revenue rose 13.7 per cent to $118.5 million.

Increased production, based on improving market conditions, was the catalyst for AVJennings' strong first-half results.

"We're very much in the volume part of the market," chief executive Peter Summers said. "When you're in that part of the market, you reflect overall market trends."

Residential developers such as AVJennings, along with bigger players including Mirvac and Stockland, are expected to reap the rewards of a surge into new housing. New dwelling approvals by local councils passed 200,000 for the first time in history, in the 12 months to December.

Mr Summers said the main driver was a long period of underinvestment in housing.

"That created a shortage of product compared to underlying demand. There was a sustained period where consumer confidence was low."

AVJennings began steadily boosting its work in progress two years ago in anticipation of a recovery. By the end of December it had 1539 lots under production. One year earlier it was 974 lots. In June 2012, it had fallen to just 318 lots.

Mr Summers said home buyers were confident that the worst of the financial crisis was past and they had a greater sense of job security.

"Interest rates haven't been the main factor in buyers' decisions. Consumer confidence has been the main issue," he said.

However Mr Summers warned that political turmoil - such as the ructions over the federal Coalition leadership - did affect buyers.

The political environment is something we'd like to see sorted out. It's back now as something that is having an impact on consumers."

The developer does not gives earnings guidance, but it has lifted its expectations of contract signings from 1500-1700 to 1700-1900 for the full year.

Mr Summers said consumer confidence was high in New South Wales, and Sydney remained the strongest market in the country.

Demand in Brisbane was also rising and was flowing through to the Noosa, Caloundra and Coomera markets.


Fairfax Media Management Pty Limited

Document AFNR000020150209eb2a0001v

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Jennings and super fund plan 2000 lots
THE AUSTRALIAN APRIL 29, 2015 12:00AM

Turi Condon

Property Editor
Sydney
Jennings and super fund plan 2000 lots
AV Jennings chief executive Peter Summers, left, and chairman Simon Cheong. Source: News Limited

Listed residential builder AVJennings has struck a joint venture with Australia’s biggest superannuation fund AustralianSuper to develop more than 2000 housing lots north of Melbourne.

The partners have an option over three parcels of land at Wollert, 27 kilometres north of the CBD, with work expected to start on the 1.4 million square metres site in 2016.

AVJennings chief executive Peter Summers, said the joint venture provided an “exciting opportunity for AVJennings to broaden its relationship with AustralianSuper”.

Mr Summers said the group had been pursuing the project for about nine years.

The options, with three separate owners, would be exercised soon with the project likely to take more than 10 years, Mr Summers said.

With the Reserve Bank poised to cut interest rates as early as next week’s monthly board meeting, Mr Summers said while rates had been the key issue to buyers for two to three years, job security and to a lesser extent, political stability were the main factors affecting housing market sentiment.

“We are selling very solidly in NSW and expect Queensland to follow,” Mr Summers said, noting that Sydney’s hot market has been underpinned by a 10-year undersupply of housing.

AVJennings is expecting to average about 2000 lots a year, up from 500 lots four years ago, he said.

The $85 billion AussieSuper pushed into Australia’s housing market last year, appointing Queensland Investment Corporation and Industry Superannuation Property Trust to find mostly broadacre subdivision developments for the fund.

At the time AustralianSuper’s head of property, Jack McGougan, said the fund had been researching the broadacre land market for a long time and saw an opportunity for good returns.

In March the superannuation giant paid $1.1bn for a 25 per cent stake in a Hawaiian shopping mall in as it increases its property investment holdings. That deal took the fund’s allocation to real estate to about 8.5 per cent

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http://www.valuebuddies.com/thread-4824-...#pid112179

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At PBT of $42m, AVJ is poised to surpass FY3/05 PBT of A$39.2m

http://infopub.sgx.com/Apps?A=COW_CorpAn...idance.pdf

ASX/Media Release
6 May 2015
Profit Guidance
AVJennings Limited (AVJ) has continued to perform strongly during FY15 with contract
signings and work in progress at their highest levels in 8 years. The Directors of AVJ
have determined that it is appropriate to provide market guidance at this time based on
this continued strong performance.
Managing Director Peter Summers said that, based on information currently available
to the Company, AVJ was on track to deliver PBT for FY15 in the order of $40 million or
higher (FY14 $27 million), despite the impact of recent adverse weather in New South
Wales and Queensland which will delay a significant number of settlements into early
FY16. “The performance reflects both AVJ’s strategy to significantly increase its
production levels, a process begun in late calendar 2012, and the continuing strong
market conditions, particularly in New South Wales, Queensland and Auckland, New
Zealand” Mr Summers said.

Separately there is also an investor presentation:

http://infopub.sgx.com/Apps?A=COW_CorpAn...ay2015.pdf

Vested
GG

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AVJennings in race for Investa’s residential arm
THE AUSTRALIAN MAY 11, 2015 12:00AM

Bridget Carter

Mergers & Acquisitions Editor
Sydney
Gretchen Friemann

Mergers & Acquisitions Editor
Sydney

Locally listed residential developer AVJennings and Pacific Alliance Group have been short-listed to buy Investa’s residential land business as part of the sales process for the $9 billion platform, according to sources.

The land assets throughout Australia are believed to be worth several hundred million dollars and sit within the development business of Investa Property Group, which has a pipeline value of more than $4.3bn.

Melbourne-based AVJennings develops land and builds apartments and houses across Australia and New Zealand, while PAG is an alternative investment manager run by experienced Australian real estate executives based in Hong Kong.

They are competing for Investa Land’s developments, which encompass broadacre and infill subdivision, with more than 10,000 residential lots and over 550 ha of industrial land.

The final five short-listed parties bidding more than $2bn for the office towers on Investa’s balance sheet are preparing to consider more detailed information about the business.

Further details about groups the final contenders have secured as capital partners might also emerge this week.

It is understood that owner Morgan Stanley Real Estate’s ambition is to finalise the UBS and Morgan Stanley-run process by the end of June.

The five final bidders in the advanced stage of the contest are said to have lobbed bids for the balance sheet assets ranging from $2.1bn to $2.4bn, valuing the offices at a premium of up to 33 per cent on their book value.

Among the parties to have made the final cut are Cromwell Property Group, which is advised by Bank of America Merrill Lynch, Dexus Property Group, advised by Deutsche Bank and Goldman Sachs, and private equity giants Blackstone and Brookfield, which are both self-advised.

LaSalle Investment Management is also in the final line-up and Dexus is believed to be partnering with the Abu Dhabi Investment Authority.

Offices on Investa’s balance sheet include the prestigious Deutsche Bank Place Sydney skyscraper on Phillip Street and 120 Collins Street in Melbourne.