This article is from the Australian Property Journal archive
THREE Singaporean property companies have made a foray into Australia, joining forces to acquire a $150 million mixed-used hotel and apartment project in Fortitude Valley, Brisbane.
Heeton Holdings, Lian Beng Group and KSH Holdings have teamed up with Marvel Investments Pty to develop the project in two joint venture structures.
Marvel Investments is headed by former Macquarie property executive Tim Jones. He is also a director of the Singapore-backed and Perth-based boutique developer Twin Ocean Group.
The development will comprise two residential towers of 30-storey and 23-storey totalling 324 apartments as well as a 23-storey hotel featuring 198 guest rooms at 186 Wickham St and 29 Ranwell Lane in Fortitude Valley.
The residential component will see Marvel control a 67% stake, with Heeton, Lian Beng and KSH acquiring a 18.15%, 9.90% and 4.95% interest respectively. The hotel development will be led by Heeton in a 70:30 joint venture with Lian Beng.
The development is the trio’s first foray into Australia.
“We chose Brisbane to make our maiden foray into the Australian market as we believe the market is highly attractive due to its socio-political stability and a high level of transparency,” Heeton chief operating officer Danny Low said.
“Australia’s properties will continue to attract strong interest from Asian investors and thus, we are confident of making this project a success,”
Low said the apartments would be marketed to locals as well as Asian Investors from key countries such as Singapore, Malaysia, Indonesia and Hong Kong.
“According to a report, Brisbane will need 450 extra rooms per year to meet the state government growth target of doubling overnight visitor expenditure by 2020, giving strong impetus for more hotel investment.
“Together with our partners, we are very excited to be part of the rejuvenation program set in motion by the Brisbane City Council. Prospects are very good at this site as Fortitude Valley continues to attract strong interests from both residential buyers and tourists,” he added.
Lian Beng’s executive chairman Ong Pang Aik said the company was excited to break into a new market.
“Going in together with partners whom we have cooperated with in past successful projects further strengthens our resolve in making this new venture fruitful,” Ong said.
KSH managing director Choo Chee Onn said the company has been continually assessing overseas opportunities and are enthusiastic to be making our entry into Australia.
“As we combine our proven capabilities in construction and property development projects across a broad spectrum of industries and projects in Singapore, we shall embark on another quality project with the same commitment to excellence,” Choo said.
Property Review
