Major developer Sunland to wind up operations
One of the country’s best known luxury developers, Sunland Group, has announced plans to wind down business operations over the next three to five years following the completion of current projects.
The company announced via an ASX on Tuesday plans were in place to complete and sell off its current projects and land banks in order to repay liabilities and shareholders before the company goes private and potentially ceases operations.
Sunland has been operating below its net tangible asset value – which currently sits at an estimated $2.56 per share – for the past 11 years after surviving the 2008 Global Financial Crisis.
The Queensland-based company was founded in 1983 by Iranian businessman Soheil Abedian and Foad Fathi and has since been taken over by Mr Abedian’s son, Sabah Abedian.
Having previously created Gold Coast landmarks such as Q1 and the Palazzo Versace, it had planned to take the hotel brand global but later pulled out of Dubai where it had projects.
After achieving a share value above $4 in the early to mid-2000s, the company has consistently trended at less than half this amount over the past decade, with the 30 day volume weighted average price over the past 30 days at $1.33. Following the announcement, the share price rose to hit $2.