ONTERRAN SECURES $95M PIPELINE AT COURAN COVE

Written on the 12 July 2016

ONTERRAN SECURES $95M PIPELINE AT COURAN COVE

CONSTRUCTION firm Onterran (ASX:OTR) is set to reap more than $95 million after acquiring apartments and land at Couran Cove Resort.

The Brisbane-based company has identified 'substantial' development potential at the South Stradbroke Island site, with plans to develop 220 approved houses and sell 105 existing apartments.

The acquisition also includes large leasehold parcels of land, with the project forecast to generate more than $95 million in revenue over the next four years.

Onterran executive chairman Lachlan McIntosh says the acquisition will bolster the company's pipeline of work.

"The board of Onterran is excited about the acquisition of the Couran Cove Resort assets as we consider there is significant upside potential in the acquired assets, and the development land provides the platform for the company's next four to seven years' work," McIntosh says.

"The development potential of Couran Cove is vast and we expect it to be challenging but also very rewarding."

He says the strategy will help Onterran become less susceptible to pricing fluctuations.

The company has recorded rising prices in Queensland with its acquisition of Bloomer Constructions, while regional work in Western Australia has declined.

The acquisition is expected to drive earnings from 2017 to 2020 and provide a base for further investments.

Onterran will raise up to $21.5 million through the issue of redeemable convertible preference shares at 55 cents apiece to fund the acquisition. The offer follows an 8-for-1 share consolidation, with a maturity date of five years from issue.

The company will hold an extraordinary general meeting on August 15 for shareholders to approve the issue.

 


Latest News

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

TREASURY WINES UNCORKS SWEET $269M PROFIT DESPITE INVENTORY WOES

REVEALING the fruits of its past year of labour, Treasury Wine Estates (ASX: TWE) has posted a 55 per cent increas...

TATTS GROUP POSTS PROFIT AND REVENUE DROP ON FEWER JACKPOTS AND BAD WEATHER FOR RACING

TATTS Group (ASX: TTS) has posted a full year net profit loss of 5.7 percent and a revenue decline of 8.4 per cent as...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter