Sunland Group Boosts Profit Expectations

Submitted by Jim Thesiger on 16 March, 2010 - 07:34

Sunland Group (SDG), a company that is involved in the business of property development and construction with concentrations on Sydney, Victoria, Gold coast, northern NSW, Brisbane and Dubai has boosted its yearly profit expectations by as much as 15 to 20 percent due to the house and land settlements that came earlier than expected. The company is currently expecting to post a $17 to $18 million worth of profit at June 30th. According to Sunland, the revised guidance was motivated by the scheduled settlements for the house and land in its Australian operations- something that was settled earlier than expectation. These settlements are going to be included in the original profit guidance for the company within the financial year June 30, 2010, boosting the original profit guidance approximately by 15 to 20 percent.

In an announcement on Monday, the managing director of the company Sahba Abedian stated that the company had as many as 20 developments throughout the eastern seaboard of Australia and its Gold Coast and Victoria house and land operations were the best performers. He also added that the Victoria operation had an impressive price growth. The Sunland managing director claimed that the Australian market made a strong come back. It is to be mentioned that the company announced its plans to re-enter the high-rise market on the previous month, capitalising on a return to the industry by the investors.

Sunland revealed that the property volumes that it sold fell to $90 million where a year earlier the volume was recorded as $290 million. However, the group claimed that it is currently planning to increase the land holdings at eastern seaboard with nine residential project releases which takes the numbers to 957 residences. Previously, the analysts expressed their concerns regarding the exposure of the group to three joint-venture operations in Dubai that involved about $1.9 billion worth of end value.