Shares in Gold Coast-based property developer Sunland Development Group have fallen 2.5% on news that James Packer has resigned from the company’s board.
Packer, whose private company holds a 19% stake in Sunland, has taken a big loss since buying into the company back in 2006.
His stake, originally worth $70 million, is now worth just $25 million.
Packer originally bought into Sunland to gain exposure to the developer’s Middle East operations, which were booming a few years ago as the oil-rich emirate of Dubai was transformed.
But the credit crisis has put the brakes on Dubai development and Sunland has been hit hard, with a number of projects deferred or postponed. In March, Sunland announced $190 million worth of write-downs on its Dubai developments.
More recently, the company has been caught up in a scandal involving a case of bribery in Dubai. On Monday, Sunland announced it was launching legal action in the Federal Court alleging two property executives were deceitful when they sold Sunland a block of land in October 2007.
Sunland shares have fallen from $2.61 to 70c during the last 12 months.
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