ALF Group Holdings AG – Major Distressed Property Acquisition and Profit Upgrade
(firmenpresse) - ALF Group Holdings AG – Major Distressed Property Acquisition and Profit Upgrade
Sydney, Australia 14th June 2010 - ALF Group Holdings AG (ISIN: CH0044678180 / symbol: AG1) is pleased to confirm the following:
1. Major Distressed Property Acquisition
a wholly owned subsidiary, ALF Property 1 Pty Ltd, has agreed to resolve the matter by the acquisition of the underlying assets at a 95% discount to the current debt. A purchase contract with the receiver for Reef Cove Resort Pty Ltd has now been accepted and executed.
In 2006, Cairns City Council consented to give Reef Cove Resort a development approval for a subdivision of 102 residential lots, 20 supa lots which are each individual large development sites in themselves, including areas for a resort hotel, townhouses, and resort village infrastructure on False Cape, which marks the eastern boundary of Cairns Harbour. On completion it is expected that there will be accommodation for over 1,500 people.
The claim originated when a funder advanced over AUD$ 60 million (inclusive of fees and interest) to a property developer, to fund a beachside development (Reef Cove Resort) with an end value of approximately AUD$ 120 million. Upon request for a further agreed drawdown, the funder (MFS) defaulted in late 2007 as it was unable to provide the balance of the funds that it had previously agreed to provide under the terms of the loan agreement due to the Global Financial Crisis. In 2009, both the funder and the borrower were placed into liquidation.
The matter has now been resolved by ALF Property 1 Pty Ltd entering into a contract to purchase the land (including existing improvements) for a total price of AUD$ 3 million. The Directors estimate that the current value is over AUD$20 million and to comply with Audit obligations, a valuation will be undertaken later in the year.
To date, the property has had over AUD$ 30 million of planning, civil works and construction of services and improvements made to it. ALF Property 1 Pty Ltd has not taken over any debt liability and the intention is to own the site outright with nil debt.
ALF Group has had preliminary discussions with several property development companies regarding an appropriate structure with regards to undertaking the required work to complete the project over the next 3-5 years and had also held discussions with previous civil contractors and construction and development management to be contracted to complete the project starting in 2011. It is a five stage project with stage 1 budgeted to generate a net income of approximately AUD$ 10 million (expected to be in the 2012 financial year).
2. Revised projected net income (EBIT) for ALF Group Holdings AG
Upon settlement and consistent with IFRS Accounting Standards, the Reef Cove property will be re-valued prior to the end of the current fiscal year and is expected to yield an IFRS net profit of approximately AUD$ 11 million.
Subject to the impending settlement of this transaction, the Directors are pleased to announce a further revised upgrade of full year earnings as detailed below:
- Fiscal year 2010: AUD$ 20 million (previous estimate AUD$ 14 million)
- Fiscal year 2011: AUD$ 30 million (previous estimate AUD $20 million)
About ALF Group Holdings AG
ALF Group Holdings AG (AG1) currently owns 50% of one of Australia’s largest litigation funders which also provides corporate restructuring services, funding and debt and equity solutions. It is also an acquirer of distressed assets.
The Directors of AG1 have announced their intention to exercise the option to acquire the remaining 50% of ALF that it does not own. This is expected to be completed before the EGM, details of which will be announced at the appropriate time.
For further information please contact:
ALF Group Holdings AG
Level 29, Chifley Tower
2 Chifley Square
Sydney, NSW 2000
Australia
Telephone +61-2-9293-2500
Fax +61-2-9293-2930
Website: www.cancanholdings.com
eMail: info(at)alfpl.com
public eye CONSULTING BUSCHE
Karsten Busche
Managing Director
Tel.: +49 30 43 05 89 22
eMail: info(at)publiceye-consulting.com
Leseranfragen:
Can Can Lingerie Holding AG
HEAD OFFICE
77-79 Anzac Parade
Kensington, 2033
Sydney, NSW, Australia
Ph: 02 9663 2842
Fax: 02 9663 2638
Email: reception(at)cancan.com.au
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Datum: 14.06.2010 - 11:58 Uhr
Sprache: Deutsch
News-ID 22342
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