Developer Port Bouvard has pushed back the commencement of its 3,000-lot Point Grey residential project to 2013, after reporting an interim loss of $15.7 million, driven down by a $19.2 million impairment charge on the Oceanique apartments in Mandurah.
Revenue was down 81 per cent, to $11.7 million, contributing to the 344 per cent fall in profit.
The directors of Port Bouvard said the $19.2 million write-down associated with Oceanique was made in respect to the development’s slower than anticipated sales rate and the continued soft market for luxury apartments in the region.
To date, Port Bouvard has settled a total of 31 apartments at Oceanique, for $74.5 million in settlement proceeds.
It said it presently holds eight unsettled contracts for Oceanique apartments.
At Point Grey, Port Bouvard said it expected to commence construction during 2013, after originally proposing to kick off the master-planned community before the end of this year.
“Persisting soft market conditions in the property sector have clearly impacted the results for the half year to 31 December 2011 as well as delaying the originally proposed commencement date for the company’s major project, Point Grey,” Port Bouvard said in a statement.
The company expects first titles for the 341-lot first stage at Point Grey would be received during 2014.
At close of trade today, Port Bouvard stocks were down 10.2 per cent, at 3.5 cents.
