Property Investments

The Property division consists of a portfolio of syndicate investment properties, property development projects, and wholly owned/operated properties.

Investment Property

Schaffer Corporation’s portfolio of quality investment properties, which generates strong and stable earnings, consists of the following (current at FY18 Full Year Report);

The debt associated with the properties varies with each property’s risk profile however the vast majority of this debt is secured against the individual properties and is non-recourse to Schaffer Corporation.

Property Development Projects

Schaffer Corporation owns several properties the directors believe have significant redevelopment potential in the future. The long-term strategy is to eventually redevelop these properties and maximise returns to shareholders.

  • Lot 701, 702 & 703 Jandakot Road

Schaffer Corporation owns a strategic 54.4 ha property at Jandakot, Western Australia, located between two freeways and 15 minutes south of Perth CBD. The overall site has substantial development potential.  The Western Australian Minister for Planning approved a Scheme Amendment in November 2017, which was formally gazetted in February 2018, to increase the scope of Additional Uses to allow Warehouses, Showrooms, Masonry Production and Nurseries over approximately 39 hectares. This Additional Use area includes 6.2 ha currently leased to Austral Masonry Holdings (Lot 701).

  • Bennett Avenue, North Coogee

Schaffer Corporation, through its 83.17% owned subsidiary Gosh Capital Pty Ltd, owns a 2.1 ha-piece of land in North Coogee that used to accommodate the Gosh Leather manufacturing facility. The site has been zoned high density residential from industrial, and can accommodate approximately 175 units.

Valuation Policy

Schaffer Corporation adopts a conservative property valuation policy with all property, other than equity investments in property unit trusts, reflected in the group financial statements at depreciated cost, not market valuation. Consequently, Schaffer Corporation has substantial unrealised capital gains on its investment property portfolio. These capital gains will be realised over time, and when the board considers the best interests of shareholders are served by a sale of an investment property interest.