15/11/2005 - 21:00

Port Bouvard returns favour

15/11/2005 - 21:00

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Port Bouvard expects increased return to shareholders on better-than-expected prices for the final sale of land at its two estates, in Stirling and near Mandurah.

Port Bouvard returns favour

Port Bouvard expects increased return to shareholders on better-than-expected prices for the final sale of land at its two estates, in Stirling and near Mandurah.

The company now expects a final return of between $1.95 and $2.15, an increase of about 30 per cent on the previous forecast.

The news came as the Australian Stock Exchange queried Port Bouvard’s directors over an increase in its share price from $1.77 on November 4 to $1.92 last week.

In a letter addressing the query, the company said the increase in share price was due to unexpectedly strong property sales at Port Bouvard, where prices obtained were much higher than previously forecast.

Also in the announcement was the revelation that “it is not the present intention of the directors for the company to be wound up”, as the market had previously been advised.

“Rather, the board will seek further opportunities for the company as they consider there to be significant inherent value in the ASX-listed company, together with the sound management systems, expertise and goodwill generated from the successful development of Port Bouvard and Princeton residential estates,” Port Bouvard company secretary, Niels Kroyer, said in a letter to the ASX.

Last month, the release of the final stage in Princeton Private Estate at Stirling was announced, two years ahead of schedule due to market demand.

Port Bouvard’s results are a far cry from those of 2001, when the Satterley Property Group provided $30 million worth of credit financing to Menzies Court (subsequently Port Bouvard) that allowed phase one of the then stalled Stirling Lakes development (now Princeton) to proceed.

The year the Satterley Group came to Menzies Court’s aid, the company had recorded a net loss of $325,000 for the 2001-2002 financial year.

Last week, only 25 lots remained in the entire Princeton estate.

Earlier this month Port Bouvard reported October to be the best-ever month for sales within the Port Bouvard estate, with 115 home sites sold, worth $50 million.

This brings the number of home sites sold this financial year to 171 – approximately 300 per cent ahead of Port Bouvard’s budget forecasts.

Total unsold and unreleased land at Port Bouvard is 374 lots, with about 81 per cent of the estate sold at the end of the last financial year.

In his statement to the Stock Exchange, Mr Kroyer said the company had enjoyed unexpected record sales for the month of October and improved prices in a strong market.

Encouraged by the recent sales performance and prices, the directors now expect it is likely sales of the remaining lots of land at the two estates at Port Bouvard and Princeton could be completed during the second half of 2006. However, this will depend on general market conditions, the state of the economy and unrelated factors.

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