FKP to sell part interests in The Milton and Point Cook estate

FKP Property Group has announced it has reached an agreement with PBD Developments for the sale of part interests in two development projects totalling $46 million.

The transaction includes a 50% interest in The Milton (pictured), a 309 residential apartment development project in Brisbane, for $28 million.

It also includes the $18 million sale of a 14 hectare non-contiguous en-globo site in Point Cook in Victoria, known as the Yang Land, which forms part of FKP’s Saltwater Coast residential estate.

The transaction is subject to PBD shareholder approval and will be progressively payable over 18 months.

Geoff Grady, Chief Executive Officer of FKP, said the divestments are another progression in FKP’s strategy to become a pure retirement group.

“Both sales are above book value,” Mr Grady said. “FKP will continue to divest non-retirement assets such as these at or around book value as we continue to execute this strategy.”

The proceeds of the transactions will be used by FKP to repay Group debt.

Jally Lin, Chief Executive Officer of PBD, said the acquisitions are in line with the company’s strategy to diversify its geographical footprint and expand its development pipeline on Australia’s eastern seaboard.

It is anticipated the shareholder vote will not be conducted prior to December 2013.

The Milton is a residential apartment development located 1.5 kilometres from Brisbane’s CBD and has an estimated end value of $200 million. To date, more than 70% of apartments have been pre-sold and construction is on track to be completed in September 2015.

The Yang Land is located in Point Cook, 20 kilometres south west of Melbourne’s CBD and on completion, will feature 266 residential lots.

Following the sale of the Yang Land, FKP will still have in excess of 1,100 residential lots at Saltwater Coast.