Just two months ago when James Packer bought a $70 million stake in Gold Coast based property developer Sunland the market was left wondering whether it was a gamble his late father Kerry would even be happy with…
The deal by Packer’s Consolidated Press Holdings to buy the stake in Sunland, including options which, if exercised, would increase its holding to 19.9% — was an unusual step for the young media tycoon.
Packer said at the time he was attracted by Sunland’s grand overseas expansion plans into Dubai, other parts of the Middle East and Asia.
And yesterday right on cue, Sunland, almost two months to the day that Packer bought his seat on the developer’s board, the gamble came up trumps announcing its Emirate Sunland Group had just signed a deal to project manager a $4 billion development in Dubai.
Sunland’s cut is expected to be around $80 million.
Sunland will reap substantial fees out of the development of a planned community of some 10,000 homes, three hotels, more than 20 high rises apartment buildings; as well as medium rise villas and townhouses.
According to Sunland, the new community will also have a central retail and commercial centre.
The $4 billion Umm Al Quwain master planned community, which neighbors Sharjah, is 60 kilometres north of Dubai.
“The project management opportunities available for the Group to provide its expertise offshore, fulfils the Group’s objective to increase its annuity income stream from non development segment of the company,” Sunland managing director Sahba Abedian said yesterday.
Sunland said since opening its offices in Dubai the group had been presented with a number of opportunities to provide development and project management services.
Sunland expects future growth from its Middle East adventures.
The group yesterday closed up 8 cents or 3.35% at $2.47 – on the trade of half a million shares.
By Ted McDonnell
