Chuan Hup Holdings' wholly-owned subsidiary, Ventrade Maylands, has agreed to purchase a 17,256 square metre site in Maylands, Western Australia for A$16.7 million (S$19.3 million).
The seller is a private investor, Mr Christopher Damian Dodd, who owns the prime development land located 4.5 kilometres from the Perth central business district.
Ventrade Maylands will enter into a development venture with Australian-listed developer Finbar Group to carry out the re-development of the site.
Under the deal, Ventrade Maylands will contribute the land and Finbar will contribute half of the purchase price of the land as working capital and carry out the redevelopment of the site.
Ventrade Maylands and Finbar will share equally in the development profit, with Finbar earning a project management fee.
The site is expected to yield some 336 residential apartments plus an additional 2,100 square metres of commercial space.
Chuan Hup said the land is a prime development site in an up and coming suburb in Western Australia, in close proximity to the Perth CBD.
The directors believe that the acquisition and the development venture will allow the group to leverage on Finbar's experience in property development to secure a good return for the company.