SUNLAND'S $50M TOP-UP FROM BIG INVESTORS

Written on the 12 November 2015 by Nick Nichols

SUNLAND'S $50M TOP-UP FROM BIG INVESTORS SUNLAND Group (ASX:SDG) is topping up its cash reserves through a $50 million note issue as the company fires up its high rise development program in south-east Queensland.

The Brisbane-based company says the move is aimed at diversifying into debt capital markets and to provide working capital for new opportunities.

Sunland spent $82 million on site acquisitions in FY15, and while it has already dipped its toe in earnest back into the high-rise market with Abian in Brisbane, it is now gearing up for some of its biggest projects in a decade in both Brisbane and the Gold Coast.

The unsecured note issue is initially targeting $40 million from sophisticated investors, with the capacity to accept an additional $10 million in oversubscriptions. The five-year notes will carry a 7.55 per cent interest rate.

"Sunland's premium development portfolio is the culmination of more than five years of  strategic, counter-cyclical efforts and successful capital management," says Sunland managing director Sahba Abedian.

"The note issue, together with Sunland's existing banking arrangements, will assist in funding the group's current pipeline of land, residential and multi-storey developments and provide working capital for other opportunities Sunland may pursue in future."

According to the company's latest financial result, Sunland had debt of $113.4 million at the end of June with a debt to equity ratio of 32 per cent, up from 24 per cent a year earlier.

The company also had $29.8 million in cash and an undrawn credit facility of $107 million.

While Sunland is expecting a raft of property sales to settle in FY16, the company's high rise portfolio is weighted towards FY17 and beyond, beginning with the highly successful Abian.

Settlements of Abian apartments will be staggered between FY17 and FY18, while big-ticket projects such as twin-tower duo Grace on Coronation in Brisbane and Mariner's Cove on the Gold Coast are expected to settle from about FY19.

Of the 6010 residential products in the company's development pipeline, 3518 are on the Gold Coast with an end value of $2.1 billion.

The company began targeting the under-done Gold Coast market after a strong run of projects in Sydney and Melbourne. 

Reported by Nick Nichols for Brisbane Business News. 



Author: Nick Nichols

Latest News

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...

CRITICS CALL FOR MORE INDEPENDENT DIRECTORS ON BLUE SKY BOARD

BLUE Sky Alternative Investments (ASX: BLA) has defended its governance and valuation processes in response to severa...

BEGA PAYS $460 MILLION FOR VEGEMITE TO BRING THE ICONIC BRAND BACK UNDER AUSTRALIAN OWNERSHIP

VEGEMITE is back under Australian ownership after Bega Cheese (ASX: BGA) agreed to buy Mondelez International's A...

GUVERA ESCAPES WIND-UP ORDER

GUVERA has avoided being wound up after a claim for a $1.78 million debt by Kwong Properties was dismissed at the ...

Related News

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...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter