Singapore, 10 December 2015 – City Developments Limited (CDL) is pleased to announce its re-entry into the Australian residential sector. In partnership with leading Australian developers, Abacus Property Group and KPG Capital, CDL will jointly develop a prime residential land site in Brisbane’s highly sought after South Bank precinct. CDL and Abacus will jointly provide the majority of equity funding via a preferred equity interest of approximately A$30 million each (approximately S$30.6 million based on an exchange rate of A$1 to S$1.02).
Strategically located at Merivale Street in the heart of South Brisbane, the project is situated on a 2,733 square metres (sqm) freehold site and will be developed into two 30-storey towers, accommodating a total of 472 apartments with gross development value of around A$275 million (approximately S$280.5 million based on an exchange rate of A$1 to S$1.02). The convenient location offers excellent connectivity to Brisbane’s CBD and the future Queens Wharf integrated resort. 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.
Mr Kwek Leng Beng, CDL’s Executive Chairman, 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. We are delighted to partner two experienced developers with excellent track records.”
Early works have commenced for the site and both towers have been launched for pre-sales. Due to the project’s exceptional location and reasonable pricing, the sales launch has met with a very positive response.
CDL and its subsidiaries are not new to the Australian property market. In 2003, CDL’s London-listed subsidiary, Millennium & Copthorne Hotels plc (M&C), launched a luxury residential project in Sydney’s Potts Point district. Named Zenith, the 33-storey tower with 97 apartments was redeveloped from one of the two towers of Millennium Sydney Hotel. M&C’s subsidiary, CDL Hospitality Trusts, currently has five hotels in Australia – Novotel Brisbane, Mercure Brisbane, Ibis Brisbane, Mercure Perth and Ibis Perth. Until 2004, CDL through its subsidiary Kingsgate International Corporation Limited, owned Birkenhead Point Shopping Centre & Marina, Sydney’s largest outlet centre in Drummoyne.