City&Country: Offshore-- Brief

Hayman Great Barrier Reef
Often described as the most celebrated private island destination in the Great Barrier Reef, Hayman reopened on Aug 1 following five months of repair and restoration works after being damaged by cyclones Anthony and Yasi.

The resort, which is about 45 minutes by boat from Hamilton Island in Queensland, features 210 rooms, suites and penthouses, and a beach villa. According to its website, published rates start at A$466 per room per night for four nights and above. Also on the 731-acre island are the exclusive Hayman private residences. According to Lloyd Donaldson, Mulpha’s head of hotel investments, four of the eight plots have been sold. Houses and land went for a little below A$20 million on average. Only 20% of the island can be developed due to its steep terrain.

Situated on the island’s eastern hillside, each residence has complete privacy within a natural sanctuary. To add to the exclusivity, Amanresorts architect Kerry Hill has created residences that combine privacy with generous light-filled spaces, contemporary design and a spacious swimming pool.

FKP Property Group
FKP is a leading Australian property and investment group. Over more than 30 years, FKP’s portfolio has grown to include mixed-use, land, retail, residential, retirement, industrial and commercial assets that define how hundreds of thousands of people live, work, retire and invest.
Operating under the Aveo Live Well brand, FKP is the market leader in the Australian retirement village sector, owning and managing 79 retirement villages across Australia. The scale of its portfolio enables FKP to offer senior citizens access to a full scope of lifestyle choices. Its strongest presence is in Queensland, Victoria and South Australia.

FKP’s villages have about 12,500 residents and offer a diverse range of products aligned to the needs of the ageing population. The biggest retirement village is Aveo Durack, 13km south of Brisbane’s central business district. The 84-acre tract includes a vacant site for future extension.

There are 548 residents in Aveo Durack, which has a total of 527 units, made up of 423 independent living units (ILUs) and 104 serviced apartments (SAs). Terms and conditions vary from retirement village to retirement village as some villages were acquired with pre-existent terms.

How does the retirement village concept work? When FKP sells a unit to a purchaser (whether strata or lease), it receives a settlement of the deferred maintenance fee (DFM), which is usually 25% or 30% of the gross selling price upon exit — either the purchaser moves out or exits.

The prices of the units are from A$92,000 to A$580,000 (for the ILUs) and A$72,000 to A$320,000 (for the SAs). Typical DFM terms are 30% over five years (for ILUs) and 33% over three years (for SAs).

The retirement division is the largest in terms of profit delivery for the group. It accounts for about A$1 billion in FKP’s balance sheet. Aside from retirement, FKP’s second largest division in terms of profit delivery is residential communities, contributing 16% to the underlying profit as at June 30, 2010.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 882, Oct 31-Nov 6, 2011