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DVN: Bacchus Marsh Residential Land Project

Leading residential developer Devine Limited (DVN) is pleased to announce it has now completed all documentation in relation to a joint venture with The Gull Group to develop anew $800 million community at Bacchus Marsh, west of Melbourne. The Gull Group and Devine will develop the land in a Joint Venture with the land being madeavailable to the Joint Venture via a Development Rights Agreement. Devine will be appointedto provide all development management and sales and marketing functions. Commercial terms of the Development Rights Agreement and Joint Venture Agreement are subject to confidentiality. The 141 hectare site, which borders a golf course on one side and the Werribee River on the other, is zoned Residential 1 and is expected to yield approximately 1,500 lots over the next 10 years and will play a major role in meeting demand for affordable housing options inthe growth area west of Melbourne. First sales are expected to be made around the middleof 2012.The Bacchus Marsh project, along with two other projects, increased Devine's national landbank by more than 2,700 lots, to 8,350 lots as at 30 June, 2010. The site, on Griffith Street, Maddingley, to the west of Bacchus Marsh town centre is approximately 45km from the Melbourne CBD or about 40 minutes by car and 35 minutes by express rail link with a station a few minutes walk from the site. Devine's partner on the project, The Gull Group, is Australia's largest private operator of retirement villages through its Country Club Villages brand. In the 12 months to June 2010 Devine Victoria delivered in excess 1,100 lots at five separate projects around Melbourne, making it one of the largest residential land developers in Victoria. Devine Limited's Managing Director, David Keir, said the structure of the joint venture wasindicative of the company's preferred model for future projects."We will increasingly be looking to leverage our skills and capabilities in project delivery andmarketing by partnering with landowners who are looking for a trusted brand to bring theirproject to fruition," he said. Devine Limited last week (August 26) reported a 28% increase in underlying earnings aftertax to $21.4 million (2009 $16.7 million) for the year to 30 June, 2010. The result was underpinned by a record 2,200 residential land settlements for the year, up 32% on 2009,and 1,057 housing starts, up 14% on the same period last year.