21 October, 2005 The Manager Company Announcements Australian Stock Exchange
Dear Sir/Madam,
Q1’s first tranche of settlements repay 100% project debt Sunland Group Limited is pleased to announce that the first tranche of settlements on Q1 has enabled the joint venture (Sunland and Surfers Paradise Beach Resort - SPBR) to retire its total construction and development debt of $307m to its banking syndicate, comprising National Australia Bank, Westpac, ANZ, OCBC Bank and James Fielding Funds Management. Q1’s total gross realisation for the 526 apartments is $425 million. The first tranche of settlement notices were issued on 30th September for 475 apartments on levels 3 – 61. Settlement commenced on Friday 14th October with 358 apartments settled in the first week. The settlement of contracts for units sold in the second tranche (levels 62 – 74) comprising 18 units, will commence from 25th October. A final settlement for the observation deck, retail and management rights will occur towards the end of November. Following the repayment of debt, the balance of settlement proceeds relating to the above three tranches will total $150m. A further $70m is due from the proceeds of unsold stock (comprising 32 apartments). After the payment of $20m in project management and construction fees to Sunland, GST and commission, the $200m balance will be allocated equally to the Joint Venture parties. The Board of Sunland, on behalf of the Q1 joint venture, wishes to thank the banking syndicate for its support in funding this iconic landmark. The repayment of construction and development debt in such a short period marks a historic event in project funding and shows the strength of the market for quality high rise developments. It should be noted that the media reports in The Australian newspaper, indicated that lawyers - Slater & Gordon represented 28 apartments in dispute. At the time of this release, a total of 9 apartments in the value of $7.9m are in dispute, of which 3 in the value of $3.1m, are represented by Slater & Gordon lawyers. As stated in Sunland’s previous ASX announcement on 20th September, 2005, SPBR and Sunland will strongly defend any action by purchasers seeking to terminate contracts of sale. The Q1 Resort and Spa will open on 26th October, and the Observation Deck is scheduled to open on 6th December. Q1 commenced construction in July 2002. Yours faithfully
ANNE JAMIESON GENERAL MANAGER
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