egolinews.com

Australand Property Group (ALZ) has entered into the first part of a contract with the Port of Brisbane Corporation that could eventually see the company build as many as 1,000 homes. The group said the contract is for the purchase of a 1.8 hectare fully serviced land parcel at the Northshore Hamilton site, fronting the Brisbane River, for an upfront payment of $11.1 million and a share of revenues through the life of the project.

Australand said the site is zoned residential and would initially deliver around 150 homes with profit contribution expected from FY12.

The group also secured options to acquire the remaining 4.5 hectares of the site, in stages, which have the potential to deliver a further 850 homes.

Australand’s executive general manager – Residential, Rod Fehring, said the site is an illustration of the group’s strategy to selectively target urban infill sites that would deliver both increased densities and superior levels of public and private amenity.

Australand said the site is about seven kilometres from the Brisbane CBD, bordered by the recently developed 2.5 hectare Northshore Riverside Park.

The company plans to develop the site with a diverse product range of apartments, attached and detached homes, with construction expected to commence in 2011 and a marketing campaign for the first stage of the project due to commence in September 2010.

As at 1142 AEST, Australand shares were up 0.5c to 56.5c.

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