This article is from the Australian Property Journal archive
A PRIVATE company associated with well known businessman Solly Lew has cashed in a development site in Melbourne CBD for $30 million to Malaysia’s largest listed property developer SP Setia.
This is the second major purchase by an offshore investor and comes hot on the heels of Austhome Group, backed by Chinese investor, acquisition of a 1,011 sqm opposite the Queen Victoria Market for $10 million.
This is SP Setia’s first foray into Australia and Melbourne. The 4,340 sqm site, currently operating as an outdoor car park, has been held by Solly Lew and private investor Feliks for 30 years. The land is strategically located on 118 – 134 A’Beckett and 151 – 165 Franklin Streets and between Elizabeth and Queen Streets.
The price paid is 20% above the $25 million initial expectations.
SP Setia’s president and CEO Tan Sri Liew Kee Sin said since 2007 the company has carefully crafted its strategy to spread out beyond its traditional Malaysian township development base to include integrated commercial, high-rise residential as well as international expansion.
“Whilst the group will continue to focus on Malaysia as its main market for growth and re-investment given the many opportunities which still exist here…The close proximity of the land to several premier Australian universities and colleges will enable the group to monetize its Malaysian customer base.
“Management therefore believes that this acquisition provides the group with a rare and valuable opportunity to enter the matured, high-income and robust Melbourne property market credibly to further establish its credentials as an international property developer,” he added.
Sin said the group has plans to develop a high-density mixed residential and commercial project and intends to launch the project within 18-24 months from the date of acquisition.
The proposed acquisition is conditional upon the approval of Australia’s Foreign Investment Review Board.
Savills director Clinton Baxter and Dominic Long negotiated the sale.
Australian Property Journal
