DEVINE SELLS APARTMENT MANAGEMENT RIGHTS

Written on the 5 May 2015

DEVINE SELLS APARTMENT MANAGEMENT RIGHTS DEVINE'S (ASX: DVN) Brisbane apartment management rights have been acquired by diversified financial services company Spring FG (ASX: SFL), with expansion to Sydney and Melbourne penned as likely over time.

SFL has established a real estate asset management division and acquired the exclusive management rights at DVN's still in-construction Mode Apartments, where 25 per cent of investor-owners are existing SFL clients.

The company will provide property asset management, letting agency and resale services to DVN's existing and new clients, and investor-owners, as well as building management services to bodies corporate.

A sum of $1.88 million is expected to be paid for the rights inclusive of $210,000 for a commercial lot within the development from where it will operate its services.

SFL managing director Keith Cullen says the acquisition is a natural extension of his company's services.

"With our clients already holding residential investment property assets estimated in excess of $500 million, the physical management of real estate assets is a natural extension of our investment advice and portfolio management services," says Cullen.

"Our clients already hold around 500 residential investment properties in inner-Brisbane, within a readily serviceable radius of Mode, so the acquisition of the management rights there provides an ideal hub from which to provide asset management and letting services across that entire asset pool.

"In addition to enabling end-to-end property advice and management service, the provision of physical asset management and letting services will provide stable recurring income that we expect to be a material contributor to revenue and profits into the future."

The acquisition will be funded by from SFL's balance sheet that currently holds more than $8 million in cash and receivables with zero debt.

The term is for 25 years. Mode is expected to be completed in mid-2016.

Pictured: DVN managing director David Keir



Latest News

SLATER & GORDON AND MAURICE BLACKBURN SHOWDOWN IN BELLAMY'S CLASS ACTION

FIERCE rivals Slater & Gordon (ASX: SGH) and Maurice Blackburn have secured funding for class actions against Bel...

WHY VIDEO IS A "GIVEN" FOR BUSINESS

IN TODAY's digital-driven world, video is king and if used right, it can push a company's brand and brand ...

BRAMBLES TUMBLES AFTER REDUCING GUIDANCE

BRAMBLES (ASX: BXB) will miss its first-half guidance due to cost pressures at its North America business.

The com...

VILLAGE ROADSHOW PARKS HURT BY DREAMWORLD TRAGEDY

QUEENSLAND visitors to Village Roadshow (ASX: VRL) theme parks have declined 12 per cent in the wake of four deaths a...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter