09 May 2014 Aveo Sells the Last of its Four Residential Development Sites at Gasworks in Brisbane for $19.5 million

The rationalisation of all the residential development sites held by Aveo Group (ASX: AOG) at its Gasworks site in
Brisbane is now complete.
Aveo today announced that it has entered into an unconditional contract for the sale of the last of its four residential development sites at its Gasworks development in Newstead, Parkside Boulevard 1, for $19.5 million. The sale price achieved is well above its current book value.
The sale of the four residential sites at Gasworks, namely sites B, C & D announced in March this year, and
Parkside Boulevard 1 announced today has now yielded Aveo a total of $59.5m.
This increases the total value of non‐retirement asset sales by Aveo in FY14 to $221.5 million. The Group is on track with its stated target of reducing net debt to below $350 million by 30 June 2014. Apart from the Group's active land‐banks which continue to sell at accelerated rates of sale in the ordinary course of business, the five remaining non‐retirement assets for sale are now:

Gasometer 1 (retail/office building)

Gasometer 3 (commercial development site)

Currumbin (residential land)

Miller St (office building)

Albion (residential apartment development site)

The sole remaining commercial development site at Gasworks for sale is Gasometer 3, which Aveo Group is currently marketing for sale. Stage E, the residential tower above Gasometer 1, is being held as a potential new retirement complex.
Parkside Boulevard 1 is being acquired by a Sydney based fund manager. The transaction was brokered by James Walsh of Deloitte Capland Real Estate Advisory. Settlement is scheduled for May 2015. The site is expected to yield between 200 and 250 apartments on completion.
Aveo had been in discussions with a number of parties regarding the site, reflecting the demand for quality sites within the Newstead River Precinct.
Aveo Group Chief Executive Officer Geoff Grady said "The disposal is consistent with Aveo's strategy of continuing to divest all non‐retirement assets as we transform to become Australia's leading pure retirement group. The sale will add further amenity and value to the Gasworks commercial precincts, including our successful Gasometer 1 retail and commercial complex."

END Investor Contact:

David Hunt, Chief Financial Officer
T +61 2 9239 5526 | E david.hunt@aveo.com.au

Media Contact:

Justin Kirkwood,
T +61 2 9231 5600 | M +61 411 251 324 | E Justin@kirkwoods.com.au

About Aveo

"We will grow with older Australians by inspiring greater living choices." Aveo is a leading and trusted owner, operator and manager of retirement communities across Australia. Aveo's philosophy

is underpinned by a commitment to grow with older Australians by inspiring greater living choices. We currently do so for

12,000 residents in 75 retirement villages across Australia. Aveo also manages and develops a diversified $700 million property portfolio. Over 30 years, Aveo's portfolio has grown to one that encompasses retirement, residential, commercial, industrial and mixed‐use property assets. Together these communities define how hundreds of thousands of people in Australia live, work, retire and invest.

Issued by Aveo Group (ASX:AOG) comprising Aveo Group Limited ABN 28 010 729 950 and Aveo Funds Management

Limited ABN 17 089 800 082, AFSL No. 222273 as Responsible Entity for the Aveo Group Trust ARSN 099 648 754.

aveo.com.au

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