CHIP Eng Seng Corp has partnered an Australian developer to purchase a piece of land in Perth for A$20 million (S$24.9 million).
The 50:50 joint venture with Cranecorp plans to turn the 1.02 hectare site at Scarborough into a mixed use development. There will be three blocks of 12-storey buildings, with around 150 residential units, 80 serviced apartments, nine townhouses, commercial offices, retail shops and parking facilities.
Scarborough is a seaside suburb in the western part of Perth, and is a 40-minute drive from the city.
The investment will be financed through internal funds and bank borrowings. Chip Eng Seng does not expect the development to have any material impact on its net tangible assets and earnings per share for the current financial year ending Dec 31, 2010.
The counter gained half a cent yesterday to close at 35.5 cents.
The local construction and property group has been growing its presence Down Under. In March, it won the tender for a land parcel in Melbourne for A$20.2 million. It also has two completed projects in Adelaide.
'Besides Singapore, we see attractive opportunities for Chip Eng Seng to grow its portfolio of quality residential projects in the region,' said executive chairman Lim Tiam Seng.
'Australia is one of them. Its long-term property outlook remains strong, driven by population growth and robust consumer and business sentiment. Demand continues to outstrip supply in this market.'
Chip Eng Seng's partner in the latest deal, Cranecorp, is a private developer based in Melbourne. Its projects include Tribeca, also a mixed use development in that city.
Source: Business Times, 11 May 2010
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