Sunland holding on

The end of the Dubai property boom washed through Sunland Group's first-half profit yesterday after the Gold Coast developer posted an $8.4 million bottom-line result.

The profit for the six months to the end of December is down 87 per cent from $67.8 million a year earlier, but the previous result reflected buoyant conditions in Dubai which was sailing through the global financial crisis at the time.

The latest result sets Sunland up to deliver on its promised $15 million profit for the full year, putting the company on a 'back-to-basics' track after the turmoil in the Middle East.

Sunland is still pushing ahead with the Palazzo Versace and the 80-level D1 tower in Dubai, with the projects 60 per cent and 40 per cent respectively completed.

Managing director Sahba Abedian said changes to Dubai law also had helped Sunland pursue wayward property buyers who had reneged on instalment payments for both projects.

Mr Abedian would not disclose how many buyers were likely to default on settlements, but he said the company was 'working through the issues' with individual purchasers.

Sunland, which yesterday reiterated its developments in Dubai had no recourse to the listed company in Australia, is likely to reveal the number of defaults at the end of this financial year.

Meanwhile, Sunland is edging closer to two new high-rise projects in Australia, one in Brisbane City on a $25 million site bought from Devine Group last year, and another at Labrador on the Gold Coast.

The Brisbane site, part of Devine's abandoned French Quarter proposal, is earmarked for a 40-level $250 million luxury apartment tower that Sunland promises will be a 'landmark' for the city.

The Labrador project, on Marine Parade, is going through the council approval process and will be launched later this year.

Neither high rise is expected to add to Sunland's bottom-line profit until 2013.

Mr Abedian said the latest profit result was 'sound' in the prevailing conditions, showing Sunland had repositioned itself into market segments that were performing.

Sunland has 600 contracts awaiting settlement at existing developments and another six projects to launch, he said.

Mr Abedian said the company was expecting organic profit growth in the next few years from its current housing projects and it was still on the lookout for potential development sites.

"We are in a strong position to pursue acquisitions but we are being very cautious," he said.

In the first half, Sunland splashed out $23.4 million for the remaining undeveloped land at The Glades golf estate at Robina, bought from long-time developer Thakral Holdings.

Sunland's latest result has been built on revenue of $111.7 million, down from $323.6 million a year earlier.

It had a net asset backing of $1.27 a share at the end of December, down from $1.97.

Dubai operations accounted for just 8c of the latest figure, valuing Sunland's operations there at $24.4 million.

There was no interim dividend announced.

.