FRASER and Neave (F&N) property arm Frasers Centrepoint has bought a residential site in Sydney, Australia, for A$82.5 million (S$97.8 million).
There are plans to turn the 13.7-hectare plot into a community comprising almost 800 homes, a childcare centre, sports facilities and other amenities.
The site is located in the suburbs on the border of Ryde and Putney, 12km north-west of Sydney's central business district.
Frasers Centrepoint CEO Lim Ee Seng described the deal as 'strategic'. It boosts the company's land bank in Australasia to 9 million sq ft from around 8 million sq ft.
The project will also 'strengthen the Frasers brand as we continue to make further inroads into Australasia', he said. The company is planning and developing more than 5,800 homes in Australia and New Zealand.
The Sydney site is part of an 18-ha plot owned by Sydney's Royal Rehabilitation Centre, which provides rehab services for people suffering temporary or permanent disability. Royal Rehab decided to sell part of the land to Frasers Centrepoint to fund a new rehabilitation, disability and research centre.
The New South Wales government has approved the concept plan for the site. The project will include houses, town houses and apartments. Roads, traffic calming devices and other infrastructure will also be built.
Frasers Centrepoint will set aside 2.3 ha of open space for community use. It will also join hands with Royal Rehab in a multi-million dollar project to develop publicly available community facilities such as a childcare centre, a meeting room and sports and recreation amenities.
Frasers Centrepoint's Australasian unit will start preparing submissions to the authorities for infrastructure plans and the first stage of residential construction. Work on the public parks will start this year.
F&N shares lost six cents to close at $5.20 yesterday. In a note on Wednesday, CIMB analyst Donald Chua kept his 'outperform' call on the counter, citing successful overseas property sales as one of several possible price catalysts.
Source: Business Times, 26 Jun 2010