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  • Property developers AVJennings have hit back at news reports today, addressing its reported plan to develop 8700 homes across Queensland’s south-east
  • The company confirms it does have intentions to do so, but only agreements for an initial 3500 homes have been signed
  • The lots will be developed on greenfield locations in the town of Caboolture, described by AVJennings as ‘fast growing’
  • CEO Peter Summers said the project will bring about quality, affordable housing to thousands of Australians

Property developers AVJennings have signed on to develop a reported 3500 homes in Queensland’s south-east.

The company broke details of the deal after several regional Queensland news outlets reported the company was moving towards 8700 lots instead of 3500.

In an ASX media release to Aussie shareholders, the company reiterated that while the reports were factually correct, an agreement has only been signed for the initial 3500.

The company will be developing a ‘large parcel’ of greenfield land in Queensland’s town of Caboolture.

AVJennings management described this area as ‘fast-growing’ and is looking to exercise final documentation of the deal over the coming few months.

“This is a very exciting project for AVJennings because it gives our company the opportunity to provide a world class master-planned community in this fast-growing region,” company CEO Peter Summers said.

The town of Caboolture is located in the Moreton Bay Area between Brisbane and the Sunshine Coast.

“The project is one of significant scale and complexity. Bidders were made aware successful selection would be heavily dependent on both the vision for the project and the ability to deliver on this vision,” Peter added.

“This project will allow us to provide quality, affordable housing to thousands of aspirational Australians, particularly first home buyers.”

AVJennings has particular interest in developing the area due to present long-term residential opportunities.

As well as addressing its new developments in Queensland, AVJennings released a market update for the 2019 financial year today.

Before tax, the company is preparing to round the year up to $23 million in profits, less than what it anticipates for the 2020 financial year.

Company management believes it performed at a reduced profit due to ‘deteriorated’ market conditions in Melbourne and Sydney.

AVJennings shares are trading at a 2.5 per cent discount today for 58.5 cents a piece. The company’s market cap is presently valued for $243.7 million.

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