15/04/2013 - 13:36

Port Bouvard ventures past WA borders

15/04/2013 - 13:36


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Port Bouvard ventures past WA borders
Port Bouvard's Oceanique apartment development near Mandurah.

Battling residential development group Port Bouvard has announced its first investment outside of Western Australia, which will be funded partially by a $7.4 million share placement.

Port Bouvard announced today that it had invested $8.9 million in a $30 million joint venture townhouse project in Sydney’s Annandale, around 5 kilometres from the CBD.

The 23-townhouse development is expected to be completed within two years.

The company said its share of the project would be funded by a $7.4 million placement and $1.5 million from its cash reserves.

The placement was priced at 1 cent per share and was made to professional and sophisticated investors.

“After Port Bouvard’s recapitalisation at the start of 2013, the investment in Annandale is the next positive step forward for the company,” chairman Winson Chow said.

“Annandale adds a cash generating asset to Port Bouvard’s asset portfolio and is forecast to provide profitability and a good return in the short-term.”

Port Bouvard’s stock was trading at 1.1 cents at 1:17pm, WST.

In February, Port Bouvard reported an interim statutory loss of $4.046 million, on revenue of $877,000.

The company said the 93 per cent fall in revenue was a result of its restructuring efforts, including a review of its portfolio of assets, renegotiation of its bank facilities and revised working capital arrangements.


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