Sunland Group: Ron Bakir’s Homecorp mounts ‘friendly’ takeover of Gold Coast development giant

The co-founder of development giant Sunland Group has reveal his views on the takeover of the company he spent 40 years shaping. ABEDIAN SPEAKS

The co-founder of development giant Sunland Group says it is bittersweet to see the company he spent more than 40 years shaping be taken over.

Ron Bakir’s Homecorp has made an offer to buy up all remaining shares of Sunland, the company that built the Q1 and Palazzo Versace, for 45c.

It is expected the total return to the shareholders will be around $3.47 per share compared to the $1.33 had Sunland continued in its present guise.

Sunland co-founder Soheil Abedian, a close friend of Mr Bakir, said it was an emotional moment for him.

“When you develop something over four decades, your top priority is to the shareholders and this is a company which began with just one house and went on to build the tallest residential tower and more than 45,000 units and townhouses,” he said.

Ron Bakir and Soheil Abedian. Picture: Regina King

“It is a mixed feeling for sure but the positive is that the shareholders will get what they are entitled to and even more but on the other hand there is a feeling that you grow something and hope it will be in the hands of someone who can take it forward.

“We hope Ron Bakir will stay true to the culture of Sunland and there is no doubt he will do that.”

Mr Abedian said the move was the right step.

“It is emotional without a doubt but never the less, you always have to weigh up the positives against the emotions and your ultimate duty is to the shareholders and that’s what we’ve done,” he said.

The takeover bid must now be ratified by Sunland shareholders, something expected to be completed by September.

A notice to Sunland’s shareholders sent on Wednesday reveals Sunland’s remaining directors all back the move.

“Having carefully considered the offer, Sunland’s directors unanimously support the offer and recommend that shareholders accept the offer, in the absence of a superior proposal and subject to the independent expert concluding, and continuing to conclude, that the offer is fair and reasonable to shareholders,” it reads.

“Each Sunland director intends to accept the offer in respect of each share they hold, in the absence of a superior proposal and subject to the independent expert concluding, and continuing to conclude, that the offer is fair and reasonable to shareholders.”

Sunland, founded in 1983 by Mr Abedian and Foad Fathi, has been winding down since 2020.

In November 2023, Soheil and son Sahba Abedian both resigned following the delisting, severing the family’s 40-year relationship with the company. The elder Mr Abedian had been its chairman while his son was its long-serving managing director. The Abedian’s positions were made redundant after the sale of its remaining assets and both resigned their board seats in the now-delisted company.

The Abedians have since formed their own private development company, with several projects already in play.

‘Friendly’ takeover of Gold Coast development giant

Developer Ron Bakir has launched a “friendly” takeover of delisted building giant Sunland Group.

Mr Bakir’s Homecorp has made an offer to buy up all remaining shares of Sunland, the company that built the Q1 and Palazzo Versace, for 45c.

It is expected the total return to the shareholders will be around $3.47 per share compared to the $1.33 had Sunland continued in its present guise.

The company’s final share prices before its delisting in late 2023 was 73c.

The move must now be ratified by shareholders, something expected to be completed by September.

Ron Bakir, CEO, Homecorp Photo: Regi Varghese

Sunland non-executive director Chris Freeman said the move would allow the net proceeds of the company to be returned to shareholders much earlier than anticipated.

“Now Sunland has been delisted, it still has a legacy of ongoing liabilities and operational costs which keep the company alive to cover those legal obligations, which is a six-year workout,” he said.

“We could not disperse the net proceeds until this was completed but we have had a friendly approach from Homecorp to acquire the company and have been working through the process for a little while before settling the first stage on Wednesday.

“It’s a friendly takeover, so we have been working closely to ensure that both parties see value and can be comfortable that there is a good transition for both Sunland shareholders and for Homecorp.

“This means the shareholders, instead of waiting six years for their last cents, means we can bring the matter forward and everyone can get on with their lives.”

Sunland, founded in 1983 by Soheil Abedian and Foad Fathi, has been winding down since 2020.

In November 2023, Soheil and Sahba Abedian both resigned following the delisting, severing the family’s 40-year relationship with the company.

The elder Mr Abedian had been its chairman while his son was its long-serving managing director.

The Abedian’s positions were made redundant after the sale of its remaining assets and both resigned their board seats in the now-delisted company.

Sunland chief financial officer Grant Harrison was appointed executive director to replace them.

However the pair immediately launched their own private development enterprises, which has more than $1.5bn of project on its books.

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.

Soheil Abedian is building Peerless, a $255m, 36-storey resident tower in Mermaid Beach which will rise over the city’s most expensive mansions on Hedges Ave.

The project will have 109 units. The company also bought a site on Broadbeach’s Ann Street from fellow tower developer Jim Raptis for $12.1m.

Mr Raptis, who had approval to build a 35-storey tower on the site had previously spent $12.5m for the land. Abedian and Co is now designing a 38 storeys which will have 120 units.

Sahba Abedeian’s Arium Group is redeveloping the Greenmount Beach resort site into a multi-tower project.