Sunland Development Group applies to leave the ASX after 28 years as public company

A high-profile Gold Coast development group is set to leave the ASX after almost three decades as a public company. Here’s what it means for its projects and shareholders

Gold Coast’s Sunland Development Group has formally applied for delisting from the Australian Stock Exchange.

The company, which listed on the ASX in 1995 and developed landmarks including Q1 and Palazzo Versace, outlined its plan in a statement on Thursday afternoon.

Sunland’s founders, the Abedian family, have been progressively buying back shares in the development company, with a view to delisting, since 2020.

The group has been downsizing, selling its assets and returning the proceeds to shareholders via hefty dividends – with $198.5m paid last financial year alone.

As the group’s largest shareholders, with total holdings of at least 42.88 per cent, the Abedian family has enjoyed much of the dividend bounty, while the value of their holdings increased due to the repeated buybacks.

The Lanes Residences, Mermaid Waters.

Although Sunland is exiting the development sector, the Abedians are not – with their private family companies buying up some of the listed group’s assets and embarking on new major projects.

A company directed by Soheil Abedian and son Sahba, Pacific Development Corporation, paid $42.3m for the Greenmount Hotel site in 2021

The family is also hanging onto a number of apartments within Sunland’s projects, including the penthouse at 272 Hedges and three apartments in The Lanes at Mermaid Waters.

Under the company’s plan, shareholder would be asked to approve the delisting at its annual general meeting on September 29.

If approved, the delisting would take place on October 30, with shareholders to be paid out on November 1.

Dr Soheil Abedian and Anne Abedian.

Speaking about the listed company’s public wind-down in 2021, chairman Soheil Abedian said “It is our grand finale but as Freddie Mercury sang, life will go on”.

Sunland’s statement said the move was in the interests of shareholders because the listed group no longer had any active projects, developments or material business assets.

It said once the value of its net assets had been returned to shareholders, Sunland would cease to have a sufficient level of operations to warrant its continued listing and the cost of its continued listing would no longer be justified.

Once delisted, Sunland will be an unlisted disclosing entity for as long as it retains 100 shareholders and will still be required to lodge regular reports with ASIC.

Artist impression of Peerless, a $255m, 36-storey tower proposed for Mermaid Beach by Sunland founder Soheil Abedian, his first project outside of his company. Picture: Supplied.

In its FY23 full-year results, released last week, Sunland reported net profit of $33.4m, down from $92.6m the previous year, and declared an 11c franked dividend for shareholders.

Sunland was set up by Soheil and friend Foad Fathi in 1984 and initially built luxury homes, including one for realtor Max Christmas and many for the late Mike Gore at Sanctuary Cove.

Foad left the business shortly after it listed in 2000 and Soheil steered the company into expansion that took in Melbourne, Sydney, Brisbane, the Sunshine Coast and Townsville.

Sunland has enjoyed many highs, widely fluctuating profit levels – 2006-07 was an $88 million year – and some with more turbulence, such as an ill-fated Palazzo Versace foray in Dubai.

Sunland shares were trading at $1.07, down 2.72 per cent, yesterday afternoon.