Gold Coast-based MFS Diversified has unveiled plans to tap into Hervey Bay's booming market.

This week the group announced civil work had begun on it's 800-lot $120 million Augustus project, a joint venture with the Honeycombes Property Group, a privately-owned group which has strong focus in northern Queensland.

It also unveiled its first enclave of homes at Mariners Cove, with construction almost finished on 18 lots. Four of these have been snapped up.

Both projects are under the banner of MFS Diversified subsidiary Villa World. MFS Diversified owns 75 per cent of the Augustus project, with plans to construct some of the homes.

The two announcements come just days after the group was given the nod to build the $1 billion Eynesbury township at Melton in Victoria.

When the Augustus project is completed, the integrated estate will feature a conservation area, a planned retail precinct on a 2040sqm site and a planned retirement facility on Scrub Hill Road.

MFS Diversified chief executive Brent Hailey said the Honeycombes property Group was project-managing the development and responsible for all land sales. He said the Hervey Bay market was an 'exciting stage' in the group's history.

"Our involvement in this major project is evidence of our confidence in the area and with the eventual yield of approximately 800 lots provides a strong pipeline of land to satisfy future growth that we have identified."

The blocks range in size from 600sqm to 645sqm.

The announcement contines a booming year for the group.

Earlier this year, it added to its portfolio the Optus building in Fortitude Valley, Brisbane, for $18.5 million and major Caltex service station centres in Goondiwindi, Stanthorpe and Emerald for a payout of $19.9 million.

In April, it announced that construction had begun on its $22 million Hastings residential project at Kallangur in Brisbane's north.

MFS Diversified shares yesterday were 1.5c lower at 89.5c.

Weekend Bulletin
Business Weekend - page 152
Saturday, June 2, 2007