Axiom Properties Ltd has announced two projects, including a child care centre in Brighton, as part of a strategic alliance with its major shareholder, Pivot Group.
Axiom Properties Ltd has announced two projects, including a child care centre in Brighton, as part of a strategic alliance with its major shareholder, Pivot Group.
The full text of a company announcement is pasted below
The Directors of Axiom Properties Ltd are pleased to announce that pursuant to the Strategic Alliance Agreement signed between the company and its major shareholder, Pivot Group, in October 2006, it has entered into two separate transactions that will involve Axiom completing development opportunities in Caboolture, Queensland and in Brighton WA.
The Caboolture opportunity will see Axiom purchase land from Pivot for valuation, and will then construct a purpose built Medical Centre for an ASX Top 150 company, Symbion Health Ltd. The terms of an Agreement to Lease and Lease have been agreed and executed. Under the terms of the Lease, Symbion will take a 10 year lease of the property with fixed annual growth increases on very attractive terms. A fixed lump sum construction contract has also been negotiated and agreed with the builder.
The Brighton WA opportunity will see Axiom purchase land on Marmion Ave, Brighton from Pivot for the construction of a purpose built childcare centre. Brighton is a part of the fast growing northern corridor region of WA. Under the terms of that lease, DayCare Australia Pty Ltd will take a 15 year lease of the property with fixed annual increases, also on very attractive terms. Final negotiations with the builder will see Axiom entering into a fixed lump sum contract for the construction of the premises.
Executive Director Ben Laurance said, "both of these opportunities represent an outstanding return on equity to shareholders. These developments have a combined end value of ~$7m and the superior returns they offer provide Axiom with some quality development
opportunities for completion in a short space of time."
"These projects also add to Axiom's spread of developments across Australia. In addition to Axiom's Western Australian projects at Port Geographe in Busselton and the 100 St George's Terrace office development in Perth, Axiom will now have a project in Queensland and is actively pursuing other projects in Melbourne and Adelaide", he said.
"It's pleasing that the Strategic Alliance Agreement executed with Pivot in October 2006 is already providing opportunities for Axiom", Mr Laurance said.
Both the Caboolture and Brighton projects are subject to shareholder approval, expected to be sought in February.
