Media Releases
09-05-2007
Twenty years is not the only milestone being celebrated
It was only four years ago that Reed Property Group had a total of $250 million committed to Sunshine Coast projects. Today, Reed Property Group is one of Queensland’s largest development and construction companies with more than $1.5 billion worth of residential, commercial and investment projects under its belt and a conservative, focused growth agenda driving all areas of the business.
The diversified development, construction and funds management company is privately owned and is headed by father and son; founder and Chairman Harry Reed and Managing Director, Ken Reed.
This year, Reed Property Group celebrates its 20th birthday and Ken Reed says they are not about to rest on what has already been achieved.
“After a 20 year ‘apprenticeship’, Reed is rapidly evolving into a leaner, more focused development organisation with three specific profit centres for future growth”, Mr Reed said.
“Our 20th birthday is an appropriate milestone to review some significant achievements so far, while we also review our direction and implement new strategies to optimise our performance and ensure our sustainability for the next 20 years.”
Earlier this year, the company made the decision to divest its hospitality assets in order to focus on its core development, construction and funds management businesses.
This decision was a strategic one, Ken Reed said, taken by the Board of Directors after considering the current buoyant market for hospitality assets and the longer term strategic direction for the group.
“The tender period closed last week for the three hotels and we have received significant market interest in the assets. We are now entering the heads of agreement phase with potential buyers and transfer of the hotels will take between two and three months to complete,” Mr Reed said.
In residential terms, the Riva project has been the highlight for the year, with some 21 apartments and $42million worth of sales achieved in a 12 month period. The last remaining apartment – the penthouse – represents the best brand new, absolute waterfront apartment available on the Sunshine Coast today, and is expected to sell quickly.
Ken Reed also indicated that both the Wises Farm and the metro (redevelopment of the Big Top Shopping Centre) projects are proceeding to plan and progress is very positive on both fronts.
“The nature of the projects is such that there is no new residential stock in the production pipeline for at least the next six months,” Mr Reed said.
Because we only have a handful of m1 apartments and the Riva penthouse remaining, it is difficult to justify the commercial viability of retaining an in-house sales team. With this in mind, the Board has decided to outsource sales activities to external real estate agents.”
Reed has three residential apartment buildings on the market; absolute waterfront via the penthouse at Riva; waterside via m1 on Duporth Avenue, Maroochydore and Ramada Pelican Waters Resort offering house sized apartments where one can enjoy all the rewards of a 4½ star resort lifestyle next to the Greg Norman designed Pelican Waters Golf Course everyday.
Reed Construction continues to grow and now has an annual turnover in excess of $150 million. Last year saw this division dramatically increase their capacity, having been commissioned by external developers for projects such as Karmasea in Alexandra Headlands, Monterey and Waterline in Maroochydore, Settler’s Cove in Noosa, Rivage in Mackay and the Woolworths Shopping Centre in Childers.
Reed Funds Management has also found a valuable niche in the market. Favourable rankings in research reports from various investment reporting houses have endorsed the Reed Property Trust’s conservative and intelligent management agenda – information which has been well received by both the wholesale and retail markets.
Within its first two years of operation, the diversified Trust already has more than $100 million funds under management, incorporating assets such as Sunshine Coast retail centres, Chancellor Village Homemaker Centre, Chancellor Village Convenience Centre and Noosa Gateway.
Last year, the Property Trust purchased two major assets including an A-grade office block on the Gold Coast called ‘Silver @ The Exchange’ worth $23 million and the $28 million state-of-the-art APN printing and publishing facility located at Yandina. These acquisitions are part of a steady growth plan since the Trust was launched in September 2005.
Reed is a joint venture partner in the Bella Grace Childcare Centres in Aroona, Beerwah and Chancellor Park Village. With Council approval to build a centre in Nambour, together with the existing three centres, the company expects demand to require the development of other childcare centres across the Sunshine Coast.
This year, the Sunshine Coast community will be able to watch the progress of the Reed Charity Foundation 2007/2008 project which is the construction of an accommodation facility next to the Nambour Hospital for patients receiving ongoing medical treatment and their family, similar to a Ronald McDonald House. Construction on the $1.5 million building is expected to commence in July.
Ken Reed says that one of the keys to their success is Reed’s ability to understand the needs of their customers through living, breathing, walking and talking their business philosophy which clearly outlines their approach – ‘Together we can do amazing things.’
“I have found over the years that if agreements and solutions are mutually beneficial and satisfying, then all parties will feel good about the decision and feel committed to the action plan,” Mr Reed said.
“There is a great deal to be achieved this year and it’s important to make sure we’re all having fun while we do it. Reed is certainly committed to working with our community to continue to achieve the best outcomes for all parties – its going to be an exciting year.”
Ends.
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