Port Bouvard posts $1.2m net loss

Property developer Port Bouvard has described its interim results as "pleasing" despite posting a loss after tax of $1.2 million for the six months to the end of December 2008.

Port Bouvard managing director Ross Neumann said the results were pleasing given the rebuilding phase of the Company.

"Almost all of Port Bouvard Residential Resort Estate is now sold, with only a handful of lots left across various stages. Princeton Private Estate sold out 3 years ahead of schedule. The results for the Company reflect the small amount of titled stock the Company has to sell, with over 90% of its remaining land bank either currently under construction or going through required planning approval processes. The Company expects to deliver this diverse land bank to the market over the coming 2-3 years, in what we expect to be improved market conditions."

The last remaining canal stage in Port Bouvard Eastport 5 is scheduled for completion in April of this year with unconditional pre-sale contracts in excess of $25 million.

The pre-sale contracts represent 32 of the 47 canal lots in the final stage, with an additional island with Development Guide Plan approval for 59 apartments. The Eastport 5 project now has its own stand alone financing facility for all construction costs with $17 million secured through St George until the completion of development.

The luxurious Oceanique Apartment Towers are on program, with completion expected mid 2010. The Company now has $114 million of unconditional pre-sale contracts and a secured stand alone facility with St George of $101 million for the construction of the project.

The Company expects the Port Bouvard Marina to be settled by the end of February, which is under contract for $4.75 million. The remaining constructed 12 Links villa homes are now all under contract, with 6 having already settled. In excess of $7 million of proceeds is expected from the Links villa sales.

Detailed design and planning work continues across the Company's broad acre landholdings at Point Grey, Gidgegannup, Melros, Dawesville and Esperance in addition to land at Furnissdale covered under a development agreement. These projects are expected to be ready for development within the next 2-3 years, and represent a pipeline in excess of 5,000 lots over a 10-15 year period.

"We are excited about the opportunities that lie ahead for the Company with its quality and diverse land bank. We think the quality and value of the land bank we have is further emphasized through all our broad acre landholdings at the very least maintaining their value even in this deteriorated market, as shown in the half year audited accounts" Mr Neumann stated.

The Company is in the process of obtaining an Australian Financial Services License in accordance with its previously stated funds management initiative, and expects to further update the market on its refined strategy for 2009 and beyond.

The Board continues to believe the inherent value of the Company's land holdings to be well in excess of the current share price, and plans for this to be demonstrated moving forward.