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Australian Financial Review : October 17th 2006
FBA 053 Eastlink Freeway Greens Road Outline indicative only 21.89ha* 523m* Supercentre Monash Freeway Megamart and Officeworks Narre Warren - Cranbourne Rd Princes Highway Fountain Gate Shopping Centre Our Knowledge is your Property www.colliers.com/australia Prime Commercial Land -- Narre Warren/Fountain Gate FOR SALE Jay Rowlings 0421 048 341 03 8562 1154 email@example.com Joseph Catanese 0418 367 514 03 8562 1142 firstname.lastname@example.org Nick Rathgeber 0413 420 400 03 8562 1133 email@example.com Victor Crescent, Narre Warren,Victoria • Only major commercial land subdivision within 40kms south east of Melbourne CBD • Lots from 2,800m2 to 20,000m (approx. STCA) • Zoned Business 2 • Owner can build to purchaser/tenant requirements Featured on www.colliers.com.au/69181 U70290 Eastlink Freeway Supersite TENDER 360 Greens Road, Dandenong Barry Marks 0413 996 765 03 9612 8860 firstname.lastname@example.org Kosta Filinis 0412 615 978 03 8562 1121 kosta. email@example.com Featured on www.colliers.com.au/69659 For sale by tender, closing Wednesday 29 November at 4pm • Outstanding estate - subdivision opportunity (STCA) • HUGE frontage • Proposed industrial zoning (incl in U.G.B.) Unrivalled location! * approx. The Australian Financial Review www.afr.com Tuesday 17 October 2006 53 PROPERTY Bovis Lend Lease to build ACT prison Cottage-style accommodation is planned to house low-risk inmates. Photo-illustration: WARREN HACKSHALL Mathew Dunckley KEY POINTS Construction is expected to start within a month. Subcontractors will be brought in from around the country. The project is 80 per cent designed. Bovis Lend Lease has won a $113 million contract to build the Australian Capital Territory's first prison. ACT Attorney-General Simon Corbell announced yesterday that Bovis Lend Lease would build the Alexander Maconochie Centre, which will cater for up to 300 inmates. The controversial prison will be built south of Canberra in the suburb of Hume on the Monaro Highway. ''The government has kept the project within budget ± a task which has not been easy given the heated construction market in the ACT and the major increases in the costs of building materials,'' he said. The capacity of the prison ''will meet the medium-term needs of the ACT. Building platforms, services and utilities have been included as part of the approved design to provide for future expansion''. The ACT government originally planned a prison that would house about 374 inmates. The project has been seriously on the cards since 1984 when an inquiry recommended the establish- ment of a prison system in the ACT. Construction is now expected to start within a month and completion is scheduled for mid-2008. Bovis Lend Lease beat off short- listed bidders Baulderstone Horni- brook and John Holland Construc- tion to win the tender. Bovis Lend Lease's general man- ager in the ACT, Michael Seay, said the contract was almost a straight construction agreement as the proj- ect was already 80 per cent designed. To cope with skills shortages in the ACT, Mr Seay said the company planned to bring in subcontractors from around the country. Bovis Lend Lease also planned to take advantage of tradesmen who had worked on its other prison projects in Queensland, he said. The campus-style centre will achieve a four-star Green Star environmentally sustainable design rating and feature a radio frequency identification tracking system within the centre. Its tallest building would be just two storeys high and it would feature a mixture of cottage-style accommodation for low-risk offenders through to traditional cells for higher-risk inmates, Mr Seay said. Prison projects were more akin to building a hospital than residential development, he said. ''Hospitals are very services- intensive projects, and a prison is as well,'' he said. ''The type of windows, cell doors, normal doors down to the locks, the hardware and plumbing fixtures that you use ± there is a level of detail that goes into a prison that is far beyond a normal residential project.'' Weak sentiment causes Austcorp to put off listing Ben Wilmot '' We decided to focus on building up our funds management.'' Property developer Austcorp Prop- erty Group has deferred plans for a $300 million-plus float on the Aus- tralian Stock Exchange until next year. The group is likely to bulk up its funds management activities and slow the growth of its property trust as it prepares for a listing in 2007. As well as being a developer of residential, commercial and indus- trial property, Austcorp is also an investor and third-party fund manager. The group has delivered $600 mil- lion worth of developments over the past five years and put together a $2 billion-plus project pipeline spanning NSW, Queensland, Vic- toria and the Northern Territory as it has prepared to float. Austcorp executive chairman Trevor Chappell said the group had not abandoned its plan to float. However, sentiment had been against property developers exposed to apartments and housing. Mr Chappell said the residential cycle had slowed because of affordability barriers and investors leaving the market. While Austcorp had built up a significant residential pipeline, Mr Chappell said it had also rebalanced towards industrial and commercial projects. Austcorp also had some delays where it had sought to rezone land or win devel- opment approvals, he said. A minor factor in the delay was the new accounting standards that had pushed out the recognition of profits on some projects. ''We essentially decided to focus more on building up our funds management capacity, and to some extent slowing down the rate of growth of our property trust,'' Mr Chappell said. Austcorp intends to build up externally managed trusts with a longer term aim of transferring some of the assets into its own property trust as the group grows. ''I think the way forward would be concentrating on recurring income from management fees, rather than recurring income from rental, at this stage in our cycle,'' Mr Chappell said. Austcorp appeared to lock itself into a float by the end of the year when it launched a $50 million hybrid issue on the Australian Stock Exchange last December. The hybrid vehicle, called Austcorp TOWERS, flagged that it would give its security holders the right to convert their holdings into Austcorp stapled securities at a discount. In addition, if the group does not list by December 29, there will be a one-time distribution rate increase of 2.5 per cent to at least 12.2 per cent per annum. Mr Chappell said it hurt to have to pay the extra distribution, but on balance it was the best thing for the business. Advisers on Austcorp's planned float are said to have included CommSec and Southern Cross Equities.