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Stamford Land flips New South Wales freehold site for A$51m

DEVELOPER Stamford Land has sold its freehold Dulwich Hill site in New South Wales for A$51 million (S$54.7 million).

The 10,132 square metre site at 6-26 Grove Street and 64 Constitution Road was sold to an Australian real estate fund after being acquired for A$23.7 million less than a year ago, the company said on Friday evening.

The site has development approval as of June 2014.

Chief financial officer Chua Siew Hwi said in a statement that the sale is "an immediate crystallisation of returns not dissimilar to development margins without related development risks".

Executive director Ow Yew Heng added that the group is continuing to evaluate similar opportunities in New South Wales and other states.

The sale is expected to be completed by end-February 2015.

The net book value of the property as at end-November was approximately A$28.1 million. The disposal is expected to result in an after-tax gain of about A$15.7 million for the financial year ending March 31, 2015.

If the transaction had been completed and the gain recognised during the last financial year ended March 31, 2014, net tangible assets per share and earnings per share would have increased by 1.95 Singapore cents.

Stamford Land rose half a cent to 54 Singapore cents before the announcement, which was made after markets closed.