Residential property developer Australand Property Group
(ASX:ALZ) says it has entered into a contract with the Port of Brisbane Corporation to buy a 1.8 hectare fully serviced land parcel at the Northshore Hamilton site, fronting the Brisbane River.
The purchase price will be a combination of an upfront payment of $11.1 million and a share of revenues through the life of the project.
Australand says the site is zoned residential and will initially deliver around 150 homes with profit contribution expected from fiscal 2012.
The property group says it has also secured the options to acquire the remaining 4.5 hectares of the site, in stages, which have the potential to deliver a further 850 homes.
Managing Director Bob Johnston says securing this large scale, prime North Hamilton site, will allow the company to further increase its residential presence in the growth market of Brisbane.
Construction is expected to commence in 2011 with a marketing campaign for the first stage of the project due to commence in September 2010.
Australand reported a $298.24 million loss for 2009.
