Canberra Summit On Housing Crisis

9 July 2007

The Housing Industry Association (HIA) has supported Federal Opposition Leader Kevin Rudd’s national housing affordability summit in Canberra later this month.
Representatives from the finance and property development industries and state governments will work on solutions to a growing crisis. Land release strategies, urban infill, high government infrastructure charges and skills shortages in the building sector will be examined.
Figures from the Reserve Bank show mortgage payments consume 9.5% of household income. "The Australian dream of home ownership has slipped beyond the reach of many young Australian families,” Rudd says.
Prime Minister John Howard says states should sell off more land to reduce property prices, and local councils should stop loading the cost of infrastructure onto home builders. "The biggest reason why housing is so expensive for young people now is there is not a large enough supply of land," he said.
The HIA has called for all levels of government to work in partnership to provide housing solutions. It has developed a coherent set of housing policy proposals aimed at unclogging supply constraints and restoring housing affordability.

New Bidders In The Wings For Auspine

Take-over target Auspine Ltd says it has received offers from two parties other than Gunns Ltd who may be willing to trump Gunns' $332 million takeover bid for the timber products company.
Auspine chairman Paul Teisseire told shareholders on 4 July two other parties had contacted his company wishing to conduct due diligence. In his letter, released to the stock exchange, Teisseire did not identify either of the parties behind the approaches.
"They have contacted us asking for permission to enter the data room and we are considering their request,” Teisseire said in a subsequent media statement.
Auspine said it would issue a formal target's statement to its shareholders on 13 July, responding to the Gunns’ offer and addressing issues in that company's bidder's statement.
"However, shareholders should also be aware that Auspine has had offers from two other parties wishing to conduct due diligence with a view to (potentially) making a bid materially better than Gunns," Teisseire said.
The company advised shareholders to take no action.
Forest products company Gunns has offered Auspine shareholders $6.15 a share cash, or 1.83 Gunns shares for each Auspine share. In May, Gunns made a $332 million takeover proposal for the South Australia-based Auspine.
Gunns initially bought a 25% stake for $83.2 million from a group of Auspine shareholders. It has signalled a desire to expand its forestry operations and resource base into plantation forestry beyond its Tasmanian base. The acquisition of Auspine would give Gunns access to substantial mature plantation forests.

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