Executive Summary

The Telstra site in Derby is well known. It comprises a parcel of land of 27.9 hectares and is situated 1 kilometre from the town. In 2007 Telstra decided to sell of the major share of the land and keep a small section for their telecommunications requirements. Consequently the land was sold by tender.

The Boab Development Company Pty Ltd was the successful bidder and has held the land for the past two and a half years. During this period the company has employed the services of Janet Lankester (former Town Planner for Broome) to prepare and submit a Development Guide Plan to the West Australian Planning Commission (WAPC) which will allow a substantial residential development on Lot 61 Dampier Drive.

In August 2009, the WAPC formally approved the development for 215 residential blocks and 86 multiple dwellings or 99 grouped dwellings. In addition, an application for the first subdivision of 10 blocks along the Dampier Drive entrance was approved by Council in November 2009 and subsequently submitted to WAPC for approval. We have been informed that WAPC approval will be forthcoming in April 2010. It has always been the intention of the company to develop the first 10 blocks along Dampier Drive as phase 1 of the development of the Lot 61. The market value of these blocks (all in excess of 2000m2) is around $1.75m.

Key Features
1. Largest residential development in Derby.
2. Excellent location - close to all facilities.
3. Easily assessable - 3 street frontages.
4. Approval for residential, multiple and grouped dwellings.
5. Approval for the first subdivision of 10 large residential blocks.

The company has decided to sell the property for $3.3m. The Boab Development Company Pty Ltd was established to hold the land for future development and is available to a prospective buyer.

This is an excellent opportunity to acquire a property that is now ready for development. With the construction of the new prison ($150m project) the demand for new property will start towards the middle of 2010 with completion of the prison scheduled for 2011. The exploration of gas and coal surrounding Derby is also bound to have some impact and if the growth targets predicted by the Bureau of Statistics are anywhere near correct, there is going to be an acute shortage of housing in Derby.

G. Ballentine
Managing Director