Sunland Group's asset sell-off to reap $200m as board members leave and bosses cut back work days, pay

Leading developer Sunland Group is set to reap $200m in six months as the board is reshuffled and bosses scale back their working hours. Here's how 

Leading developer Sunland Group is set to reap more then $200m in six months, even as the board is reshuffled and bosses scale back their working hours.

The windfall comes from the sale of undeveloped land held by the company, which holds unconditional contracts for more than seven sites.

The undeveloped projects include the Grace on Coronation project in Brisbane, under contract for $35.5m, and Gold Coast projects the Greenmount Hotel, under contract for $42.3m and The Lanes retail, which has a $45.82m buyer.

Three residential developments sites at Sunland's Mermaid Waters precinct The Lakes are also under unconditional contract for a total of $48.75m, partly to two businessmen with links to the Gold Coast Titans.

Car dealership king Brett Frizelle partnered with Gold Coast Titans co-owner and board member Darryl Kelly to purchase two lots, which sit on 2.2ha, for $32.75m.

Mr Frizelle is husband of Rebecca Frizelle, an outgoing Sunland board member and Gold Coast Titans co-owner and board member.

The blocks, which have approval for towers up to 12 storeys with almost 1500 bedrooms, were the final two in the precinct, with an expressions of interest campaign closing on August 18.

The forecast net profit from all the unconditional contracts is $45.1 million.

Conditional sales on undeveloped sites worth a further $9.8 million are also on foot.

The asset sale proceeds with come on top of $240m in profit from settlements in Sundland's completed and under way developments.

Shock Sunland exit

March 7: Gold Coast Titans co-owner Rebecca Frizelle will step down as a director of Sunland Development Group, as the company’s executives take a 40 per cent haircut to their salaries.

In an announcement to the ASX on Monday, Sunland said the group was scaling down its activities and remuneration would follow.

Sunland's Soheil Abedian with his Newest board memeber Rebecca Frizelle at sunlands new Royal Pines development at the Marina . Picture Mike Batterham

Executive chairman Soheil Abedian and managing director Sahba Abedian will both move to a three-day working week and have their pay reduced accordingly.

Gold Coast developer Sunland of Q1, Palazzo Versace calls time

Ms Frizelle and fellow director Vahid Saberi will resign from June 30.

Sunland founders have been progressively buying back shares in the development company, with a view to delisting from the ASX.

Sunland AGM

The company is selling undeveloped assets and completing developments that are under way.

The group more than doubled its net profit and earnings in the first half of the financial year and will pay a hefty 22c dividend to shareholders.

The developer reported net profit of $35.9m, up from $17.4m a year earlier and is expected to fully repay its debt by October, as the company continued to divest assets and scale towards delisting.

While the company reported a lower volume of sales – 168 compared to 380 in FY21 – the average sale price was markedly higher as luxury projects including 272 Hedges Ave went to market.Sunland Group doubles profit as Hedges Ave fires

February 17: Sunland Development Group more than doubled its net profit and earnings and will pay a hefty 22c dividend to shareholders for the last six months of 2021.

The developer reported net profit of $35.9m, up from $17.4m a year earlier and expected to fully repay its debt by October, as the company continued to divest assets and scale towards delisting.

While the company reported a lower volume of sales – 168 compared to 380 in FY21 – the average sale price was markedly higher as luxury projects including 272 Hedges Ave went to market.

The average value of sales increased from $655,000 to $802,000 compared to the same time last year.

Sunland Group created a full-scale sub-penthouse inside a custom-built shed to showcase the future residents of its flagship 272 Hedges Ave tower development.

In its report to shareholders, Sunland said its active developments primarily included multistorey projects 272 Hedges Ave and Lanes Residences West Village on the Gold Coast, as well as NSW housing project Montaine Residences.

The group said its active projects were 95 per cent sold, with unconditional presales of $429.1m.

Chairman Soheil Abedian said “the progress of the Group Strategy continues to be assisted by the buoyant market conditions that are being experienced”.

Sunland’s total dividend is comprised of a 10c special dividend and a 12c interim dividend.

The net profit was boosted by $18.3m after offloading undeveloped projects, including 154 Marine Pde Greenmount, Sunland said.

Soheil Abedian. Picture: Tertius Pickard

“Negotiations are in train for the sale of the remaining assets to be sold under the Group Strategy,” the company said.

Sunland has unconditional contracts to sell a further seven undeveloped sites worth $199.4m.

The group said its expected to fully repay its debt by October with completion and settlement of 272 Hedges Ave, which will yield $256m for the company.

Sunland said it expected to log a full-year profit of $98m.