GEO Property Group and BOS International (Australia) have entered into a joint venture to develop a residential subdivision at Doreen, north-east of Melbourne.
The Cornell’s Hill site on
The 222 lot development is estimated to be worth $36.8 million on completion.
Civil works have commenced on Stage 1 (60 lots) of the project with first settlements to occur in December 2008.
GEO’s managing director Guy Farrands said this agreement is a continuation of the group’s focus on strategic capital management and the use of third party capital to enhance return of equity.
“As part of our asset realisation program we have been seeking to joint venture some of our Communities Development projects,” he added.
Under the agreement, GEO will receive development management and sales and marketing management fees, as well as profit participation from its 50% equity interest.
GEO’s southern region general manager Nick Deed said the Cornell’s Hill project was ideally positioned to take advantage of continued growth in
“The site is close to a range of infrastructure, including Mernda Town Centre, freeway access to the CBD, airport and docks as well employment hubs like Altona and Laverton,” Deed continued.
Cornell’s Hill will be the second major JV for GEO and BOSI, the first being the $130 million Little Creek project at
BOSI’s director of joint ventures Craig Newnham said the company was pleased to expand its existing relationship with GEO.
“Doreen is one of
GEO shares close 0.005 cents lower at 22 cents.
Australian Property Journal
