Stamford Land, which manage a chain of hotels in Australia and New Zealand, announced this evening that they are selling their Dulwich Hill freehold development site for A$ 51 million

The announcement and release can be found here and here.

The free hold site was purchase a year ago for A$ 23 million. The after tax gain is A$ 15.7 million.  The NTA of Stamford will increase by SG$1.95 cents per share.

The IRR of this investment is impressive, but what I cannot fathom is that why Stamford is selling this development piece of land a year after purchasing it. From the reports that I see in Sydney, demand does not look like peaking. With the country being an attractive destination for migrants from China, and the popular demand for recent property sales in the city, development should yield a good result.

I don’t think Stamford land ...