Chip Eng Seng sells Melbourne site for twice of what it paid

SINGAPORE - Chip Eng Seng Corporation (CES) has entered into a sales contract to sell a vacant development site in Victoria Street in Melbourne, Victoria, the company said on Friday.

The sale price of the site is A$64.8 million (S$68.9 million), plus goods and services tax.

The settlement date is March 26, 2016.

CES had paid A$32 million for the site about a year ago.

The site is 2,927 sq m and includes a two storey heritage building shell.

The sale includes the planning permit CES obtained last year, and marketing material for a 72-storey, 1,035 apartments, multi-storey mixed use high rise development.

The contract is conditional upon CES' wholly owned Australia subsidiary, CES-Victoria, obtaining execution of side deeds with the previous owner, CES said.

The contract is not expected to have any material impact on the net tangible assets and earnings per share of the group for the current financial year ending Dec 31, it added.