AVJennings sells Contract Building operations

Company News

AVJennings Ltd (ASX:AVJ) has announced that it has completed the sale of its Contract Building operations to Sekisui House Australia Holdings Pty Ltd.

CEO Peter Summers says the completion of the sale is significant, as the division suffered heavy losses in both 2009 and 2010.

Mr Summers has also affirmed that AV Jennings will continue a relationship with the Contract Building operation, with the current arrangement including a license for Sekisui House to use the AV Jennings brand in its Contract Building operations for three years.

Mr Summers says the company will continue to focus on residential development operations, comprising of land development, integrated housing and low-rise apartments.

AVJennings Ltd reported a loss of $12.72 million for the year ended 30 June 2009.