Developer to ‘recycle’ $70m land holdings


Three months after announcing a surprise $70 million write-down in land asset value and a first-half loss for the 2014 financial year, Queensland-based developer Devine Limited is readying to sell two of its largest housing estates in outer Melbourne.

The two land banks in Wallan, about 50 kilometres north of the city, and Pakenham, 55 kilometres south-east, are expected to sell for about $70 million in total.

The Wallan site, which abuts an Australand housing estate, is 88 hectares with approval for 890 allotments.

In Pakenham, the 52-hectare, 510-allotment holding abuts Devine’s Eden Brook and is near Lend Lease’s Lakeside estate.

The two estates are considered strong assets in Devine’s portfolio. The builder has recently been vulnerable to sluggish sales of residential projects in South Australia and the Gold Coast, which is still considered over-supplied.

Devine Communities general manager Andrew Brimblecombe said the Melbourne listings were part of the capital recycling initiative announced late last year.

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