Official Newsletter of Hamton Property Group

From the Directors

Everything is relative.

It is fair to say that, relatively speaking, we are in great shape and our judgement and timing has been good (or “lucky” if you believe in it) – so far.

In 2008, we sold all of the available apartment and townhouse stock in our main projects (around $200m in sales), including  Society South Yarra, mgv Malvern, The Rathdowne Carlton, Rize Richmond and Baymarque Brighton. These projects are now de-risked from a sales and funding perspective and our team is diligently delivering these projects in conjunction with our builders through 2009.

Sensing a change in the market early last year, we made the tough decision to on-sell our development project, Stonington Malvern, to another developer once we had achieved the permit for the site. The sale allowed us to take some money off the table and position our business for, what were then, “perceived” future buying opportunities. We are excited that the Stonington project is being delivered in line with our original vision and all the hard work invested by the local Council and our team including our consultants will be delivered in the coming years.

At the end of 2008 we found such an opportunity in a 1.8ha site in Abbotsford with Yarra River frontage on two sides, passing income and strong future residential development opportunity. We bought the site from a fund controlled by Becton at a price that we believe was well below what would have been paid 12 months earlier.

In 2009 we are far from complacent – we are perhaps better described as “paranoid”.  This is not the year (if there ever is one) to be taking unnecessary risks.

We have kept our team tight and our core staff of around 20 people are all busy. We continue to build Hamton’s property management and owners’ corporation business with the intent of delivering our purchasers an excellent ongoing level of service and adding innovative concepts into our projects, such as running the Green Travel Club at Society.

We are laying the foundations for the next upturn in the cycle, at a business level by continually addressing risk management and at a project level by continuing to seek the best possible permits on our undeveloped sites, such as the former Coburg High School site and the Abbotsford site referred to above.

Our core business is affordable apartment and townhouse projects in Melbourne’s inner and middle ring suburbs and by good fortune or good design this seems to be the one part of the markets in general that has withstood the general downturn.

We will continue to specialise in this segment of the market and strongly believe that it will present our development partners and clients with rewarding opportunities over the next few years.

Hamton’s relationships are our lifeblood and are greatly appreciated. Thanks once again for your ongoing support.

Steve and Paul