Had a look on the weekend at some local seaside property about 1hr 20mins from Perth, a most amazing residential and canal development , Some properties right on the water under $400.000
The most annoying thing about it was our friend wrongway alerted us all to this development way back in Nov 02 when it was trading near the 8c mark
Follow the links and check this one out for yourself
Port Bouvard lifts dividend to 6c on higher sales 11:11, Friday, 16 May 2003
Sydney - Friday - May 16: (RWE) - Port Bouvard Ltd today announced it would pay a fully franked dividend of 6c a share. This compares with its previous announcement on February 28 in which directors mentioned the possibility of a 5c dividend. The dividend is payable on June 30 with a record date of June Port Bouvard said the increase in dividend is a result of the higher sales achieved in each of its three precincts, which should result in increased earnings. Conditional and unconditional contracts as at April 30 exceeded $65 million. The company owns the Port Bouvard Project at Mandurah, about 75 kilometres south of Perth in WA. The estate has been divided into three parts being Northport, Southport and Eastport. Shares in Port Bouvard were up 3c to 77c this morning.
Company Update
PORT BOUVARD LIMITED 2003-01-30 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ The Company is now assessing various plans for its hotel site at Southport which did not settle as planned after being sold to a Western Australian developer. The contract with the Western Australia developer has now come to an end as settlement did not take place.
Now with the development of Southport gaining pace the value of the hotel site has in the opinion of directors increased and therefore alternative use and development of the hotel site is being considered. This should result in considerable increased revenue and profit to the Company when the plans have been completed, these plans include resort style apartments and hotel.
At the same time the Company wishes to advise that work has now progressed on Phase 2 of its Princeton Private Estate development. This work is being carried out together with the Companys joint venture partner. However, the Company is still negotiating for selling its 50% share of the Princeton Private Estate development.
+++++++++++++++++++++++++ Please be advised that the effective date for the Company's new ASX Code of PBD will now be the 5th December 2002, being the date after completion of all the requirements in connection with the consolidation of capital.
N J Kroyer COMPANY SECRETARY Change of name -------------------------------------------------------------------------------- wrongway Another perth spec buy menzies court is a property developer in mandurah wa and it looks like it is finaly back on track . After checking out the development recently and looking at how the sales are going mct looks like hitting around 28 to 32 million in sales and around and a profit of 8 to 10 million it has a asset backing of .18 a share and looks to me to be undervalued a .065 cents am looking for this one to move to .12 .15 cents a share in the next few months.wrongway
-------------------------------------------------------------------------------- i visited port bouvard last weekend and they are well ahead of budget according to the sales manager in fact they have exceeded their 6 month target in the first three months .mct directors have stated that they are going to pay either a dividend or a capital return this year .wrongway -------------------------------------------------------------------------------- Subject MCT -Posted 08/10/02 -Member eddievanhalen
Hi Wrongway, I hold a large position in MCT and find the companies reporting very poor. If they would tell the market what they tell you then the shares may get some interest. Their full year report came across as pretty poor and that's how the market reacted but when you check out what happened in the second half (read between the lines a bit) and how things are looking now,this stock is an absolute bargain. NTa is around 12c and full sale value more like 18c..........and the stock's at 8c. This half should be a ripper as you said..........just wish they'd do a better job of telling people how well they're going. With many years left in the project yet you'd have to expect 20c longer term but looks like we'll have to wait til Feb/Mar for them to tell the market what's going on! Someone who understands what's going on has an order for 500k at 8c so this should support the next leg up hopefully.
Ed.
MCT -- 08/10/02 -Member wrongway
i think they will make an announcement on a dividend later this month when the satterly group excersise their option for the second stage of the stirling lakes project which is a near certainty with the way the land at stirling lakes is walking out the door. wrongway __
+++++++++++++++++++++++++ Enclosed please find a Media Release which the Company has today released. This Media Release covers further details on the agreement with the Satterley Syndicate regarding Stirling Lakes. Further the Media Release also covers the advice that the Company will only focus on Port Bouvard with the surplus cash returned to shareholders as dividends and/or capital return over the next five to seven years.
N J Kroyer COMPANY SECRETARY
MEDIA RELEASE
Menzies Court Holdings Ltd is likely to relinquish its interest in the Stirling Lakes residential property development project in October after settling an agreement last week with the Satterley Syndicate.
The Satterley Syndicate secured an interest in the Stirling Lakes development after injecting $24 million into the project.
Under the agreement, Satterley can exercise its option to acquire Menzies Court's equity in the project before October 19.
The settlement relieves Menzies Court of a number of liabilities associated with the Stirling Lakes development and if, as expected, Satterley exercises its option, Menzies Court would receive proceeds totalling some $12 million by the end of the project.
The funding enables the commencement of Phase 1 at Stirling Lakes, comprising 226 lots. The first lots are expected to be completed and have titles available within three months.
The seven-year project will see the development of some 700 residential lots ranging in size from about 440 sqm to 600 sqm. The estate includes a landscaped lakes system that provides substantial access to high quality, landscaped public open space surrounding the lake system, whilst still providing many lots with a "dress circle" view of the lakes and landscaping. The northern most lake provides some lots with full lakeside frontage.
The market price of the lots reflects the estate's close proximity and easy access to the Perth CBD, together with the overall standard, facilities offered, finish of the estate, and the relative pricing of other adjacent developments.
Menzies Court Managing Director, Mr Ross Neumann, said the agreement secured the final funding necessary to bring the first phase of the Stirling Lakes project to life.
"It also sets up an excellent opportunity for the syndicate members to access the second phase of the estate within a reasonably short period of time," he said.
"The deal is a big plus for Menzies Court because it will assist in releasing some cash flow to support our major continuing developments at Port Bouvard in Mandurah, while underpinning the value of the Stirling Lakes asset for the Company."
Nigel Satterley, Executive Chairman of the Satterley Property Group said the Stirling Lakes project was very well located and would become one of Perth's premier residential estate in its category.
"The project will deliver well-priced but very high quality residential lots within a beautifully landscaped estate and still be so close to the CBD with fantastic access to the freeway. The Satterley Property Group are delighted to be associated with the project in such a major way," he said.
PORT BOUVARD
Mr Neumann said the settlement with the Satterley Syndicate enabled Menzies Court to only focus its activities on its successful Port Bouvard project, where over one-third of the 2,200 available lots had already been sold.
As a result of better-than-forecast sales, the Company had brought forward commencement of the next stage of its Eastport estate, comprising another island canal development.
The Company had also finalised financing for the start of Southport, with completion of the first stage of the estate, comprising 88 single resident a lots, due in September.
Mr Neumann said that about $10 million had been received from the sale of residential lots and for the five-star resort hotel site planned at Southport. These funds would of fully cover construction costs for the first phase of Southport, comprising infrastructure and underground servicing for the residential lots, and for construction of the first nine holes of the integrated golf course, which was expected to open in November next year.
The Marriott Hotel group had agreed to manage the 180-room international-standard hotel to be built at Southport, with the site sold recently to a West Australian developer. The hotel is expected to be fully operational by late 2004. Mr Neumann said the hotel is a big coup for Port Bouvard and will be a huge boost locally in Mandurah by creating many needed jobs.
Menzies Court expects to sell all the remaining lots in Port Bouvard over the next five to seven years with the surplus cash returned to shareholders as dividends and/or capital return.
FINANCE
Mr Neumann said the Company was expected to have a land bank value of about $70 million by the end of the current financial year.
Currently, the net tangible asset backing of the Company calculated on book value was 12 cents per share. However, land at value represent net asset of 18 cents per share after tax.
Mr Neumann said: "One of the areas of fundamental profitability of the Port Bouvard estate is that the original acquisition price of the undeveloped estate was low. Further, the project is enjoying some escalation in sales prices as new stages are developed, supported by a general growth in demand for good properties in the Mandurah region."
For further information please contact Ross Neumann (08) 9368 6200
Agreement gives green light to Stirling Lakes Project
+++++++++++++++++++++++++ Enclosed please find a Media Release which the Company has today released. This Media Release covers further details on the agreement with the Satterley Syndicate regarding Stirling Lakes. Further the Media Release also covers the advice that the Company will only focus on Port Bouvard with the surplus cash returned to shareholders as dividends and/or capital return over the next five to seven years.
N J Kroyer COMPANY SECRETARY
MEDIA RELEASE
Menzies Court Holdings Ltd is likely to relinquish its interest in the Stirling Lakes residential property development project in October after settling an agreement last week with the Satterley Syndicate.
The Satterley Syndicate secured an interest in the Stirling Lakes development after injecting $24 million into the project.
Under the agreement, Satterley can exercise its option to acquire Menzies Court's equity in the project before October 19.
The settlement relieves Menzies Court of a number of liabilities associated with the Stirling Lakes development and if, as expected, Satterley exercises its option, Menzies Court would receive proceeds totalling some $12 million by the end of the project.
The funding enables the commencement of Phase 1 at Stirling Lakes, comprising 226 lots. The first lots are expected to be completed and have titles available within three months.
The seven-year project will see the development of some 700 residential lots ranging in size from about 440 sqm to 600 sqm. The estate includes a landscaped lakes system that provides substantial access to high quality, landscaped public open space surrounding the lake system, whilst still providing many lots with a "dress circle" view of the lakes and landscaping. The northern most lake provides some lots with full lakeside frontage.
The market price of the lots reflects the estate's close proximity and easy access to the Perth CBD, together with the overall standard, facilities offered, finish of the estate, and the relative pricing of other adjacent developments.
Menzies Court Managing Director, Mr Ross Neumann, said the agreement secured the final funding necessary to bring the first phase of the Stirling Lakes project to life.
"It also sets up an excellent opportunity for the syndicate members to access the second phase of the estate within a reasonably short period of time," he said.
"The deal is a big plus for Menzies Court because it will assist in releasing some cash flow to support our major continuing developments at Port Bouvard in Mandurah, while underpinning the value of the Stirling Lakes asset for the Company."
Nigel Satterley, Executive Chairman of the Satterley Property Group said the Stirling Lakes project was very well located and would become one of Perth's premier residential estate in its category.
"The project will deliver well-priced but very high quality residential lots within a beautifully landscaped estate and still be so close to the CBD with fantastic access to the freeway. The Satterley Property Group are delighted to be associated with the project in such a major way," he said.
PORT BOUVARD
Mr Neumann said the settlement with the Satterley Syndicate enabled Menzies Court to only focus its activities on its successful Port Bouvard project, where over one-third of the 2,200 available lots had already been sold.
As a result of better-than-forecast sales, the Company had brought forward commencement of the next stage of its Eastport estate, comprising another island canal development.
The Company had also finalised financing for the start of Southport, with completion of the first stage of the estate, comprising 88 single resident a lots, due in September.
Mr Neumann said that about $10 million had been received from the sale of residential lots and for the five-star resort hotel site planned at Southport. These funds would of fully cover construction costs for the first phase of Southport, comprising infrastructure and underground servicing for the residential lots, and for construction of the first nine holes of the integrated golf course, which was expected to open in November next year.
The Marriott Hotel group had agreed to manage the 180-room international-standard hotel to be built at Southport, with the site sold recently to a West Australian developer. The hotel is expected to be fully operational by late 2004. Mr Neumann said the hotel is a big coup for Port Bouvard and will be a huge boost locally in Mandurah by creating many needed jobs.
Menzies Court expects to sell all the remaining lots in Port Bouvard over the next five to seven years with the surplus cash returned to shareholders as dividends and/or capital return.
FINANCE
Mr Neumann said the Company was expected to have a land bank value of about $70 million by the end of the current financial year.
Currently, the net tangible asset backing of the Company calculated on book value was 12 cents per share. However, land at value represent net asset of 18 cents per share after tax.
Mr Neumann said: "One of the areas of fundamental profitability of the Port Bouvard estate is that the original acquisition price of the undeveloped estate was low. Further, the project is enjoying some escalation in sales prices as new stages are developed, supported by a general growth in demand for good properties in the Mandurah region."
For further information please contact Ross Neumann (08) 9368 6200
The Company is in the process of finalising the transaction documentation for the funding arrangement between the JV and a syndicate (the "Syndicate") headed up by Satterley Property Group ("Satterley").
The funding to be provided by the Syndicate will allow phase 1 of Stirling Lakes to be completed. Phase 1 will consist of 226 lots in the northern and northwestern parts of Stirling Lakes. Satterley will be contracted to do the marketing and project management of the phase.
On settlement of the finance for phase 1, the Syndicate will have an option, exercisable within 6 months, to acquire the Company's share in the balance of the development. Therefore, the Company will continue to hold an investment in phase 1, receiving its share of the net profits from that stage.
As part of the option agreement, the Company expects to recover its loan to the JV from the balance of the development over which the Syndicate has exercised its option. Therefore, if the option is exercised, the Company expects to recover its full investment and loan receivable over the life of the project. As the life of the project is expected to be approximately 6 years, the Company has determined that the recoverable value of the loan receivable is the net present value of the future cash flows. The discount rate used to determine the present value of the cash flows was the current weighted average borrowing cost of the Company, of 7.8%. This has resulted in the Company providing $2.5 million against the loan receivable balance as at 31 December 2001.
If the Syndicate do not exercise the option, the Company will have to consider the feasibility of continuing in the JV under the current arrangement or whether to sell the balance of the project at that stage to another interested party. While the Company has had some interest from other parties, the Company is unable at this stage to assess the likely outcome.
MORE TO FOLLOW _______________________________________________
+++++++++++++++++++++++++ The Company's has re-structured its arrangements with regard to its investment in the Stirling Lakes Project at Karrinyup Road, Stirling ("the Project"). The Company has increased its investment in the Project to 50% and has taken legal control of the associated companies which own the land.
A syndicate led by the Satterley Group including other prominent Perth businessmen have agreed to provide finance to acquire the land associated with Phase 1 of the development. Funding will be provided by the Satterley syndicate to carry out the earthworks and civil works and contribute to finance costs for the Project as a whole. The Satterley syndicate will take on responsibility for marketing and project management of the site and will use their extensive marketing skills to promote and sell the developed lots.
Phase 1 will comprise approximately 226 lots, two large public open spaces and two lakes.
Within 6 months of signing the agreement the Satterley syndicate have an option to acquire the Company's 50% stake in the remaining land consisting of approximately 490 lots.
In the event of the Satterley syndicate not exercising their option Menzies Court have a two way option arrangement where the Company can either buy out its joint venture partners interest in the land, or be bought out by its joint venture partner. In the event of either party being unwilling to purchase the land, the land will be sold undeveloped, but with the earthworks and civil works of Phase 1 complete which should enhance the value of the undeveloped land.
During the 6 months the Satterley syndicate will commence the Project, MCHL will continue to provide governance and assistance to the project management team provided by Satterley.
The purchase of Phase 1 land by the Satterley syndicate releases MCHL from joint and several guarantees, and also repays loans previously supported by MCHL in respect of those parcels of lard covered by Phase 1.
This transaction when completed will free up cash flows that can be applied to the Company's flagship project at Port Bouvard.
The Company anticipates finalising all necessary documentation during December 2001 and expects to settle the funding package by the end of January 2002.
+++++++++++++++++++++++++ At today's Annual General Meeting questions were raised regarding the future direction of the Company, particularly in relation to its involvement wth Stirling Lakes. Mr Parrott, Chairman of the Directors, advised that the investment in Stirling Lakes had been a disappointment for the Company. The Company and its Directors have been working on finding a solution to the Company's ongoing investment in Stirling Lakes. The Company expects to announce a resolution to the Company's involvement with the Stirling Lakes Project within the next couple of weeks.
Further the Company advised in reply to a question, that it estimates that its net tangible asset backing at valuation is approximately 17cents per share depending on the valuation method used.
N Kroyer COMPANY SECRETARY
_______________________________________________
Response to AFR article re Port Bouvard and Stirling Lakes
+++++++++++++++++++++++++ We refer to yesterday's newspaper article in the Australian Financial Review where the Company was incorrectly quoted and from where it could be inferred that the Company's prime project at Port Bouvard had put financial constraints on the Company. We wish to reiterate that Port Bouvard is highly successful and very profitable to the Company. The Company had experienced difficulties with its Stirling Lakes joint venture project which had held back developments at Port Bouvard. Sales for the 5 months ending 30th November 2001 at Port Bouvard amounted to approximately $16 million.
As reported in our announcement of 30th November 2001 the Company is working on resolution to the Company's investment in Stirling Lakes. The Company has a couple of offers on hand which it is now investigating and negotiating. We expect to make an announcement in this respect within the next couple of weeks.
