Australian property firm AVJennings falls, drops Queensland project as costs rise

Avjennings

20/05/2024 03:32

** Shares of Australian residential property developer
AVJennings Ltd  AVJ.AX  fall as much as 6% to A$0.315, their
biggest intraday pct drop since April 26
    ** AVJennings stock touches its lowest since May 3 
    ** Co terminates option for Rocksberg land in Caboolture,
Queensland
    ** Says spent several years progressing the project's
development approval
    ** Expected development and infrastructure costs have risen
significantly since Option agreement was signed; this does not
reflect in the rise in forecast revenue
    ** Will write-off capitalised development expenses of A$17.2
mln ($11.53 mln), and its lots under control will reduce by
3,500
    ** Says funding earmarked for Rocksberg project will be used
for other live projects over FY25 and FY26
    ** About 260,000 shares change hands, more than 4 times the
30-day average volume
    ** AVJ up 8.1% this year, as of last close


    ($1 = 1.4923 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))