This article is from the Australian Property Journal archive
MAJOR Singaporean residential property developer, the $9 billion GuocoLand, has launched into Australia by buying into a $318 million mixed-use development, as part of its global expansion outside of Asia.
GuocoLand has established a presence in Singapore, Malaysia, China and Vietnam and has made its first investment in Australia, by acquiring a stake in the $318 million West Village development at Parramatta. The 39-storey tower will comprise 397 apartments and a six-storey retail podium, 300m from the Westfield Parramatta shopping centre.
GuocoLand has entered the Australian market by purchasing a 27% strategic stake in Malaysian developer, Eco World International Berhad, via a proposed listing and IPO, with EWI targeting to raise more than RM2 billion (S$670 million 1 ) to fund the development of four projects in London and Sydney, with an estimated total gross
development value of approximately £2.4 billion (S$4.1 billion).
GuocoLand CEO Raymond Choong said the group is well established in Singapore, China, Malaysia and Vietnam, and has been actively looking at expanding into new markets to further grow its real estate development business.
“The United Kingdom and Australia have been identified as two good markets with high potential for growth, given that they are large markets offering reasonable returns, with high levels of governance and clear and strong rule of law.
“With a substantial exposure to Asia, GuocoLand has been on the lookout for investment opportunities in other markets. The UK and Australia property markets offer scalability, and we believe that with the right products and locations, they offer reasonable returns. Both London and Sydney are dynamic and vibrant global gateway cities,” he added.
“GuocoLand sees this as an opportune time to enter the London and Sydney markets. Uncertainty surrounding the UK’s historic vote in June to leave the European Union creates an opportunity for GuocoLand to enter the London market at reasonable prices and terms. “Given the size and complexity of the UK and Australian markets, we believe that the combined strengths of GuocoLand and Eco World Development Group will provide us with a stronger platform to compete better and more successfully in these two markets. We hope to increase our collaboration with EWI,” Choong said.
Australian Property Journal
