CEC in $120m deal
CEC and developer Consolidated Properties have agreed on a joint venture to build homes on the Cairns company's 8000 blocks of land.
The joint venture - the next stage of CEC's announced restructuring - is expected to return up to $120m depending on valuations to CEC as it gets back to its core construction and civil engineering business.
The move comes only a day after CEC announced the $13.5m sale of its half of the Bedminster waste composting business to partner SITA.
And they are not expected to be the last changes for CEC which is aiming to drastically cut its debt levels and return to favour on the stock market.
CEC managing director and co-founder Roy Lavis emphasised the joint venture and the Bedminster sale were not a fire sale of the company's assets.
"It is a strategic move aimed at positioning the company for other opportunities that may come along," Mr Lavis said yesterday.
In the joint announcement to the Australian Securities Exchange yesterday, Mr Lavis and Consolidated Properties managing director Don O'Rorke said the yet to be approved joint venture involves almost all of CEC's undeveloped residential land in the Cairns, Townsville and Mackay regions.
The biggest land holding is in Cairns, between Edmonton and Gordonvale. The deal does not include any of CEC's existing residential developments or any of CEC’s other businesses.
"The parties expect CEC Group will provide construction and engineering services to the joint venture and Consolidated Properties will proviode project management, marketing and sales services," the joint announcement said.
Consolidated Properties is a wholly owned subsidiary of listed property developer Trinity.
"The creation of a joint venture entity will provide Consolidated Properties with a strong portfolio of future development projects in North Queensland," Mr O'Rorke said.
The deal is expected to be finalised in the first quarter of the 2008-2009 financial year.
Share this article
Back to business: Gerard Obersky (left) and Roy Lavis are happy with the new partnership deal reached yesterday between their companies.
New Jetstar flights between Cairns and Osaka
THE re-introduction of Jetstar's four weekly direct services to Osaka in Japan and a doubling of flights to Melbourne from April 1 next year are the first significant announcements today by the airline as the result of a new agreement with Cairns Airport.
Kate earns National Pride Medal
INSPIRING young leader and cancer survivor Kate Smith could hardly believe she won a national Pride of Australia medal last night.
Escapee back in custody
BREAKING NEWS: Police have found a man who escaped from police custody at Ravenshoe on Sunday night.
Woman watched boyfriend bash, strip tourist
THE girlfriend of a man accused of raping and attempting to rape two foreign tourists at a Cairns caravan park says she watched him bash and strip one of them then chase after her.
