Berwick Waters, Clyde North residential boosts Australand sales contracts

Australand has reported a 49% rise in net profit and a 30% increase in operating profit after tax for the half-year.

Its residential division reported an increase in operating earnings.

The residential division achieved an operating EBIT result of $30.7 million for the half year up on the half year of $22.3 million.

Aggregate sales revenue for the half year was $185.0 million (HY13: $191.8 million).

Sales activity remains strong with the division holding 2,170 contracts on hand as at 30 June 2014 (13 December: 1,823 contracts on hand).

Major projects contributing to the half year result included:

• Greenhills Beach in NSW with 14 lots sold;

• Croydon in VIC with 86 lots sold;

• Greenvale in VIC with 74 lots sold;

• Clyde North in VIC with 118 lots sold;

• Parkville in VIC with 48 lots sold; and

• Port Coogee in WA with 19 lots sold. 

The Clyde North project is being marketed as Berwick Waters (pictured above) which is delivering homes within extensive wetlands and open spaces, along with shopping and community facilities complemented by additional schools

But despite the recent sales the developer’s overall revenue fell 15% according to its financial report for the half-year to 30 June.

Distributions per stapled security were 12.75 cents, up from 10.5 cents.

The group upgraded its earnings guidance in May noting if strength in the residential market is sustained, earnings per security were expected to grow 10-15% annually from 2014 until the end of 2016.

Australand is set to be taken over by Singaporean-listed Frasers Centrepoint Limited after Australian authorities approved the $2.6 billion deal earlier in July.

Property professionals are invited to sign up for the upcoming Property Observer webinar on Off the Plan Marketing and Sales Masterclass.