23/09/2003 - 22:00

Access West’s off to market

23/09/2003 - 22:00

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LOCAL property development company Access West Developments Ltd has lodged a prospectus with ASIC to raise $5 million through an initial public offering, and will list on the Stock Exchange of Newcastle Limited (NSX).

Access West’s off to market

LOCAL property development company Access West Developments Ltd has lodged a prospectus with ASIC to raise $5 million through an initial public offering, and will list on the Stock Exchange of Newcastle Limited (NSX).

Access West Developments was established in January 2002 by directors Paul McKenzie, Todd Crumbie, Jochen Diedler and Peter Wilder. The capital raising and public listing aims to increase the company’s portfolio of residential and commercial property development projects.

To date, Access West has managed a number of projects, including 1,031 Wellington Street, West Perth, and The Penthouse at 22 Nile Street, East Perth.

Access West chairman Paul McKenzie said the company would use the capital raised to expand its operations and business model in the residential, commercial property redevelopment, land sub-division and apartment block redevelopment markets.

Once listed, Mr McKenzie said, the company would be able to undertake projects independently and target the $1 million to $5 million property markets, which he described as more of a “buyers’ market” than the less than $1 million property sector.

“The model will make it possible for the company to retain the majority of profits from these projects and to maintain control, improve efficiency, diversify risk and increase our investment opportunities,” he said.

Mr McKenzie said Access West was currently turning over $200,000 a year and was aiming to grow this figure once it listed.

He said the company operated on a strict philosophy of only purchasing properties 10 per cent below resale value and aimed for a minimum projected return of 20 per cent on total costs.

This is to be achieved by targeting existing sites to reduce redeveloping and marketing costs, and by purchasing properties below replacement value so the final retail price of the property is below the market average for competing developments.

“In terms of the area of market we target we look for property that nobody else touches, which we can get development value out of,” Mr Mckenzie said.

The decision to list on the NSX rather than the ASX was made because the Newcastle index was more suited to the company’s requirements as a small to medium business.

“We are focused on maintaining cost efficiencies and listing on the NSX will provide a more economical way of becoming a publicly listed company,” Mr McKenzie said.

Access West plans to commence trading on the NSX in January 2004, with sponsoring broker Cameron Stockbrokers Limited.

The issue opened last week with 5,000,000 priority shares issued at $1 per share with a dividend of up to 12.5 cents per share per annum return.

The priority shares have limited voting shares and rank in priority to ordinary shares in dividend distribution.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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