FKP TAKES PROPERTY WRITE DOWN

FKP TAKES PROPERTY WRITE DOWN

FKP Property Group (ASX:FKP) has taken a $187.9 million impairment on its property assets and will be rebranded to Aveo Group, the company announced today.

The rebranding comes as FKP focusses on its retirement assets, with the large write down attributable to non-retirement property and done "in the context of the group’s strategy for rationalisation”.

It will also dispose of a holding in PBD Developments Limited (ASX:PBD).

The impairment will be excluded from the determination of the group’s underlying result for the year ended June 30, which is expected to be in the range of $38m to $40m.

CEO Geoff Grady (pictured) says the the write-downs are a necessary step in executing the company’s strategy.

“With the gradual recovery of the retirement sector, we are confident about the outlook for our business and re well progressed on delivering our strategy of becoming Australia’s
leading pure play retirement group,” Grady says in a statement to the ASX.

The $187.9m in write-downs come primarily from FKP’s residential and commercial inventory.

There is $107.4m total write down to the residential land development inventory relating principally to Saltwater Coast in Melbourne ($63.7m), The Rochedale Estates in Brisbane ($28.2m) and an amount of $15.5m for Ridges at Peregian Springs and Peregian Springs on the Sunshine Coast, Currumbin on the Gold Coast and Shearwater on Phillip Island in Victoria.

Albion Mill apartments in Brisbane suffered an impairment of $3.6m, while FKP’s commercial development inventory took a $48.7m hit.

The FKP is the major shareholder of Aveo Healthcare (ASX:AEH), which last month changed its name from Forest Place Group.

FKP is trading 4.33 per cent down this afternoon at $1.435 per unit.

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

Lendlease gains approval for $1.7b transformation of Queen Victoria Market precinct

Lendlease gains approval for $1.7b transformation of Queen Victoria Market precinct

Australian development giant Lendlease Group (ASX: LLC) has been gr...