City Developments (CDL)

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But Singapore-based City Developments was later seen as the front-runner to purchase the developer along with Leighton Properties, which is also for sale.
However, CDL is now said to have retreated from both Devine and Leighton’s property arm, and Leighton Properties will now probably be purchased by the country’s largest listed residential developer, Stockland.


AVJennings poised for Devine intervention
• EDITED BY BRIDGET CARTER AND GRETCHEN FRIEMANN
• THE AUSTRALIAN
• DECEMBER 16, 2014 12:00AM

Gretchen Friemann

Mergers & Acquisitions Editor
Sydney

Devine and AVJennings. Source: TheAustralian
AVJENNINGS is shaping up as the most likely candidate to purchase the Queensland-based developer Devine, which is half-owned by Leighton Holdings, according to sources.
A sales process for the business has been under way through adviser Goldman Sachs since July, yet many in the market say progress has been slow.
Sources now say a deal could drag into next year, and some are tipping AVJennings to be the strongest contender.
Others say the race is still wide open and that it has not yet ¬entered any form of exclusive due diligence.
Leighton had intended to sell its half-share of Devine as part of its overall asset sale program, which some say was aimed at ¬securing $3 billion in overall proceeds to lift dividends and pay down debt. A decision was later made to sell the entire business.
Devine is expected to sell for close to 10 per cent below the company’s net tangible assets of $245 million.
AVJennings was among the first groups to have been approached to buy the business, along with Japan-based groups such as Sekisui House, and it is believed to have lodged a bid.
Proprium Capital Partners, an entity controlled by former Morgan Stanley real estate executives, has also taken a look.
But Singapore-based City Developments was later seen as the front-runner to purchase the developer along with Leighton Properties, which is also for sale.
However, CDL is now said to have retreated from both Devine and Leighton’s property arm, and Leighton Properties will now probably be purchased by the country’s largest listed residential developer, Stockland.