Bremer Park has entered into an agreement with Walker Corporation to develop both the Bremer Land and Seahampton Land after settling litigation with Wingate Properties.
Bremer Park holds various interests in the two parcels of land at Bundamba, approximately 25 radial kilometres south west of the Brisbane CBD.
The Bremer Land and Seahampton Land have to date been the subject of litigation with
Wingate Properties Pty Limited.
The two parcels include one of 240 hectares known as the Bremer Land in which the company owns 100% and the other, of 53 hectares is known as the Seahampton Land in which the Company does not hold an equity ownership, but has an entitlement to 50% in the development profits from it.
Together, the parcels, aggregating to 293 hectares form the Bremer Business Park, which the company plans to continue to develop over time.
The project life for the Bremer Business Park is likely to be over a 10 – 15 year timeframe with construction anticipated to commence in the 1st Quarter of 2007.
The litigation with Wingate has been settled and discontinued as part of the arrangements with Walker Corporation. However, the litigation with Hudson Investment Group Limited in relation to the Bremer Land is continuing as announced to ASX on July 06, 2006.
Bremer Park will retain 100% ownership of the Bremer Land with an agreed value of $28.0 million, which will be recouped by the company on a pro rata basis as the Bremer Land is developed.
The development profits from the Bremer Land are shared 50/50 between the company and Walker Corporation.
The company will receive a 25% equity interest in Seahampton Pty Limited, which owns the Seahampton Land in exchange for the surrender of its 50% interest in the development profits from the land. The net assets of Seahampton Pty Limited are $15.0 million, which values the Company’s equity interest at $3.75 million.
The company will receive 25% of the development profits from the Seahampton Land, with the remaining shares and rights to development profits held by Walker Corporation (50%) and other parties (25%).
The development agreement with Walkers on the Bremer Land and the Seahampton Land excludes the 22 hectares of land occupied by the Australian Hardboards business.
An independent valuation of the AHL Land and associated buildings was recently commissioned by the directors which provided a valuation of $11.2 million based upon the existing use.
Meanwhile, the company has entered into an unconditional agreement to sell a surplus land holding for $1.3 million at Helidon, which is located 111 radial kilometres west of Brisbane.
The Helidon land sale recently settled and generated a profit of $0.6 million on disposal.
By Nelson Yap
