Property heavyweight City Developments has re-entered the Australian residential sector, with plans to develop a site in Brisbane.

Located in Merivale Street in the highly-sought-after South Bank precinct, the 2,733 sq m freehold site will be developed into two 30-storey towers accommodating 472 apartments.

The housing project is expected to be worth about A$275 million (S$281 million). CDL and Australian developer Abacus Property Group will provide the majority of equity funding via a preferred equity interest of about A$30 million each.

The third investor is KPG Capital, a privately owned Brisbane-based property development and investment group.

The site is well connected to Brisbane's central business district and the future Queens Wharf integrated resort, CDL said in a statement yesterday.

It is also close to 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.

The company's re-entry into Australia's residential market is in line with its overseas expansion strategy announced two years ago to supplement its Singapore operations, said executive chairman Kwek Leng Beng.

"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," he said in the CDL statement.

Early works have commenced for the site and both towers have been launched for pre-sales. The response has been "very positive", said the property group.