DEVINE SHIFTS FOCUS
1 May 2015,
RESIDENTIAL developer Devine Limited (ASX: DVN) is repositioning one of its core businesses.
DVN has announced it will reposition its housing business to focus exclusively on medium density, integrated housing solutions, after completing its existing pipeline of detached housing starts that are both under construction and under contract.
Managing director and CEO David Keir (pictured) says this will ensure the company's housing business continues to build on the improved performance of the last 12 months.
Following the restructure, DVN's operations will be separated into three divisions: Communities (land development and integrated housing), Development (apartments and mixed use projects) and Construction (residential apartment construction).
"The company's community projects have experienced increased sales and construction activity from other builders and we expect that this activity will continue to grow as a result of this re-positioning," says Keir.
DVN experienced two years of losses until calendar 2014, when the company scratched out a modest $3.59 million net profit to assure investors it was back on track. The company's $183 million Construction workbook made up the lion's share of its performance.
Talks of a sale have also surrounded the Brisbane property developer since the middle of last year, around the time Leighton Holdings (ASX: LEI) announced its intention to sell its 50.6 per cent stake in DVN.