Foster's Group Limited ("Foster's" or "the Company") today announced the trade sale of its master planned community development business, the Lensworth Group ("Lensworth"), to Stockland for immediate cash proceeds of $846 million.
Commenting on the transaction Foster's Group President and CEO Trevor O'Hoy said, "The sale of Lensworth represents the divestment of the final non-core asset in Foster's portfolio of businesses and another milestone in the group's evolution as a global premium beverages company.
"The sale process for Lensworth was highly competitive, reflecting both the quality of Lensworth's staff and its portfolio of prime residential development properties, and has delivered an excellent outcome for Foster's shareholders."
Foster's plans to pursue additional capital management initiatives to return to shareholders the majority of the proceeds both from the sale of Lensworth and the recent divestment of its residual 10% holding in Australian Leisure & Hospitality Group Limited, subject to regulatory approvals, market conditions and in the absence of alternative investment opportunities.
Foster's expects to provide details of the size, timing and nature of its future capital management program at the time of the Company's half-year results announcement on 8 February 2005.
The Company's current on-market buyback program of up to 125 million shares, announced on 17 March 2004, will continue, subject to market conditions, until shortly before the half-year results announcement, when it will be suspended in accordance with normal practice.
Media
Lisa Keenan
Tel: +613 9633 2265
Mob: 0409 150 771
Investors
Robert Porter
Tel: +61 3 9633 2560
Mob: 0407 391 829
Background Information on Lensworth:
The Lensworth Group is a leading developer of master planned residential communities, in South East Queensland, New South Wales and Victoria.
It is anticipated that these communities will be home to over 100,000 people over the next 20 years.
In developing broadacre urban sites Lensworth provides infrastructure such as roads, power, water, sewerage and essential services as well as facilities such as schools, parkland, recreation and shopping centres and business parks.
Lensworth is currently developing major communities in the following locations:
|
Property |
Location |
Region |
Zoning |
|
North Lakes |
QLD |
North Brisbane |
Residential |
|
Wallarah Peninsula |
NSW |
Port Macquarie |
Residential |
|
Glenmore Park |
NSW |
Western Sydney |
Residential |
|
Glenmore Park Quarry |
NSW |
Western Sydney |
Residential |
|
Highlands |
VIC |
North Melbourne |
Residential |
|
Caboolture |
QLD |
Sunshine Coast |
Rural/residential |
|
Caloundra Downs |
QLD |
Sunshine Coast |
Unzoned* |
|
Lake Doonella |
QLD |
Sunshine Coast (Noosa) |
Residential |
|
Bellvista |
QLD |
Sunshine Coast |
Residential |
|
Kawana Waters (including Birtinya, Bundilla) |
QLD |
Sunshine Coast |
Residential |
Lensworth employs around 100 people.
At 30 June 2004, Lensworth had:
· Assets under management (or inventory) with a book value of $315.1 million.
· Net asset value at 30 June 2004 was $201.3 million.
For the twelve months ending 30 June 2004, Lensworth generated:
· EBITA of $49.8 million.
· Operating Revenue of $245.3 million.
Lensworth's total land bank comprises around 6,600 hectares of land, of which approximately 3,600 hectares is unzoned rural land.
The zoned area has an estimated lot yield in excess of 22,000 dwellings.
