SINGAPORE - City Developments has made a re-entry into the Australian residential sector, with plans to develop a site in Brisbane, the firm said on Thursday (Dec 10).
In partnership with Australian developers Abacus Property Group and KPG Capital, CDL will jointly develop a prime site in Brisbane's South Bank precinct.
CDL and Abacus will jointly provide the majority of equity funding via a preferred equity interest of about A$30 million (S$30.6 million) each.
The 2,733 sq m freehold site is located at Merivale Street in the heart of South Brisbane and will be developed into two 30-storey towers, accommodating a total of 472 apartments with gross development value of around A$275 million (S$280.5 million), CDL said.
The convenient location offers excellent connectivity to Brisbane's central business district and the future Queens Wharf integrated resort, it added.
The site also enjoys close proximity to the South Brisbane Train Station and major universities such as the University of Queensland, Queensland University of Technology and Southbank Institute of Technology.
"The future plans for South Brisbane are highly promising with over A$5 billion of proposed infrastructure investment, further boosting its reputation as Brisbane's foremost entertainment, cultural, commercial and education precinct," CDL noted.
CDL executive chairman Kwek Leng Beng said: "Our re-entry into Australia's residential market is in line with CDL's overseas expansion strategy, which we announced two years ago to supplement our existing Singapore operations.
"Brisbane's residential market remains highly attractive due to its affordability when compared to other major cities in Australia. Both domestic and international buyers are looking to Brisbane for greater value and higher yield."
Early works have commenced for the site and both towers have been launched for pre-sales, which have been met with a "very positive" response, CDL said.