Rezoning Risks and Rewards: What’s Next for CVC’s Landbank?
CVC Limited reports a stable FY2025 profit alongside a robust landbank poised for significant value uplift, targeting a net tangible asset per share of $5.75 through strategic rezoning and development.
- FY2025 net profit after tax steady at $0.5 million
- Current net tangible assets (NTA) per share at $2.95, target $5.75
- Landbank spans 2,800 hectares across NSW, VIC, and QLD
- Key projects include industrial, residential, and data centre precincts
- Strategic rezoning and planning approvals driving value creation
Stable Profit Amidst Strategic Growth
CVC Limited has reported a modest net profit after tax of $0.5 million for the fiscal year ended 30 June 2025, reflecting the nature of its real estate investment model where profits are not expected to be smooth due to the portfolio's composition and accounting standards. Despite the flat profit, the company’s net tangible asset (NTA) per share, based on current market valuations, stands at $2.95, with a compelling target NTA of $5.75 reflecting planned strategic land development and rezoning initiatives.
A Landbank Positioned for Capital Growth
CVC’s portfolio comprises one of Australia’s largest and most diversified landbanks, covering approximately 2,800 hectares across key growth corridors in New South Wales, Victoria, and Queensland. The landbank includes 12 major projects with a current assessed value of $1.3 billion and a target value exceeding $2.1 billion. These projects span residential developments capable of delivering around 30,000 lots and 7,400 apartments, industrial land with over 1.2 million square meters of gross floor area, and emerging data centre precincts with potential capacity exceeding 250MW.
Strategic Milestones and Market Entry
FY2025 marked several strategic milestones for CVC, including entry into the data centre land market through the acquisition and development of a rare, power-rich urban precinct in South Morang, Victoria. The company secured development approvals and power infrastructure confirmations for sites at McDonalds Road and Williamsons Road, attracting significant unsolicited interest from operators and investors. Additionally, key rezoning achievements were made at Marsden Park North in NSW and Officer South in Victoria, enhancing the industrial pipeline and positioning these assets for future monetisation.
Unlocking Value Through Planning and Monetisation
CVC’s strategy focuses on unlocking value by optimizing its portfolio through asset-level strategies that create highly strategic, developable land parcels. The company plans to monetise these assets via land sales, joint ventures, or direct developments once projects are de-risked. Notably, the Norwell Valley project in Queensland represents a capital-light, greenfield development opportunity with potential for over 30,000 residential lots and significant industrial and commercial land, underpinning long-term revenue streams for the joint venture.
Looking Ahead, Growth and New Opportunities
Looking forward, CVC has outlined key strategic priorities for FY2026, including advancing industrial rezoning at Marsden Park, residential rezoning at Liverpool, and securing development approvals for data centre projects at South Morang, Woolloongabba, and Burleigh Waters. The company also aims to continue unlocking new, hard-to-access land investments leveraging its proprietary platform capabilities, maintaining a disciplined approach to capital-light growth and value creation.
Bottom Line?
CVC’s disciplined execution on rezoning and development approvals sets the stage for unlocking substantial shareholder value over the medium term.
Questions in the middle?
- How will market conditions impact the timing and success of CVC’s rezoning approvals?
- What are the risks and potential delays associated with the large-scale Norwell Valley project?
- How might increasing demand for data centre land influence CVC’s valuation and monetisation strategy?
