The dramatic drop due primarily to the end of Dubai’s property market bull run.

Sunland is still to on course to deliver its promised $15 million profit for the full year maintaining a new more conservative approach to business.

Sunland is still pushing ahead with the Palazzo Versace 60% completed and the 80 level D1 tower in Dubai 40% completed.

Managing director Sahba Abedian said changes to Dubai property law had helped Sunland pursue wayward property buyers who had reneged on instalment payments for both projects.

Mr Abedian would not disclose how many buyers were likely to default on settlements, but he did say the business was ‘working through the issues’ with individual purchasers.

Sunland, which yesterday reiterated its developments in Dubai had no recourse to the listed company in Australia, is likely to reveal how many defaults at the end of this financial year.

Meanwhile, Sunland is edging closer to two new high-rise projects in Australia, one in Brisbane City on a $25 million site bought from Devine Group last year, and another at Labrador on the Gold Coast.

The Brisbane site, part of Devine’s abandoned French Quarter proposal, is earmarked for a 40-level $250 million luxury apartment tower that Sunland promises will be a ‘landmark’ for the city.

The Labrador project, on Marine Parade, is going through the council approval process and will be launched later this year.

Neither high rise is expected to increase Sunland’s bottom-line profit until 2013.

Mr Abedian said the most recent profit result was ‘sound’ in the prevailing conditions, showing Sunland had repositioned itself into market segments that were performing.

Sunland has 600 contracts awaiting settlement at existing developments and another six projects to launch, he said.

Mr Abedian said the company was expecting organic profit growth in the next three years from its current housing projects and it was still on the lookout for potential development sites. ”We’re in a strong position to pursue acquisitions but are being extra cautious,” he said.

In the first half, Sunland spent $23.4 million for the remaining undeveloped land at The Glades golf estate at Robina, bought from long-time developer Thakral Holdings.

Sunland’s latest result have been built on revenue of $111.7 million, down from $323.6 million a year earlier. It had a net asset backing of $1.27 a share at the end of December, down from $1.97.

Dubai operations accounted for just 8c of the latest figure, valuing Sunland’s operations there at $24.4 million.

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SUNLAND Group has flaunted its financial strength yesterday emerging as the $28 million buyer of the residential and marina precinct at Royal Pines Resort.

It is the Q1 developer’s first Gold Coast property deal since last November and it has indicated further acquisitions are on the horizon.

The purchase comes as fellow Gold Coast developer Jim Raptis shrugs off allegations he could not afford to renew his building licence.

The Chevron Renaissance developer said the group no longer needed the Building Services Authority licence, indicating ‘other parties’ would take over construction of the Hilton Hotel as it concentrates on paying back an immediate debt of $300 million.

Last week, The Bulletin revealed Mr Raptis, who has four companies in receivership, was in talks with construction giant Brookfield Multiplex to take over the proposed Surfers Paradise development.

It is understood a deal is close to being finalised.

While the global credit crunch has seen many developers tighten belts, sell assets and move to pay back bad debt, Sunland said it was well-placed to take advantage of major sales.

The group bought the 19ha lot at Ashmore, adjacent to the RACV-owned resort tower, from US funds manager Morgan Stanley.

It plans to transform the waterfront site into a medium-density community with an end value of $200 million.

The group, which also developed Circle on Cavill, said the buy represented the start of its ‘counter-cyclical investment strategy’.

It said its strong balance sheet enabled the group ‘to acquire premium assets that would strengthen the pipeline and profitability in the future’.

Sunland managing director Sahba Abedian said the group’s financial discipline and the disposal of non-core assets over recent years had placed the company in a position where it could react quickly to opportunities.

“The acquisition of Royal Pines is a prime example of such opportunities,” he said.

“We will purchase the site with surplus cash and continue to have significant capacity to benefit from other acquisition opportunities the market may offer.

“Despite the volatility in the global markets, there are still specific property segments which will perform soundly in the medium term.”

He said the group was ‘assessing’ a number of other potential property deals.

“We are being approached almost on a weekly basis with opportunities and over the next 12 months we will be looking to make further acquisitions,” he said.

It is the group’s first foray in the Gold Coast property market this year.

Before that, its most recent buy was a development site at Merrimac for $5 million.

Mark Witheriff, of CB Richard Ellis, said Sunland’s decision to buy the Royal Pines development was, in this market, a ‘massive statement’.

“This is huge in this current climate,” said Mr Witheriff, who sold the property.

Mr Abedian said the group, which also has strong development interests in Dubai, had been eyeing off the site ‘for some time’.

He said the group’s plans for the site, not yet finalised, would be a mix of commercial retail and residential.

The site is 5km from Surfers Paradise and the marina includes 87 wet berths and 65 dry docks.

“Our acquisition enables us to reap the benefit of more than 20 years’ investment in the existing resort and brand, infrastructure, planning and amenities by the original developer,” he said.

The deal also includes the real estate business, Royal Pines Resort Realty.

The site was placed on the market at the same time as the hotel, which was picked up by RACV two months ago for about $60 million.

Mr Witheriff said Morgan Stanley decided to split the Royal Pines offering in order to achieve a higher price.

The US investment giant bought Royal Pines for $44.3 million in 2005 and undertook a $16.9 million refurbishment in 2006.