Chip Eng Seng Corporation and partner Cranecorp have jointly purchased a land parcel in Perth for A$20 million (S$24.9 million).
The joint venture plans to turn the 1.02-hectare site at Scarborough into a mixed use development. There will be three blocks of 12 storey buildings, with 80 serviced apartments, 150 residential units, nine townhouses, retail shops, commercial offices and parking facilities.
The investment will be funded through bank borrowings and internal funds. Chip Eng Seng does not expect the project to have any material impact on its earnings per share and net tangible assets for the present fiscal year ending 31 December 2010.
The local construction and property group has been expanding its portfolio Down Under. It won the tender for a site in Melbourne for A$20.2 million in March and also has two completed developments in Adelaide.
“Besides Singapore, we see attractive opportunities for Chip Eng Seng to grow its portfolio of quality residential projects in the region,” said Mr. Lim Tiam Seng, executive chairman of Chip Eng Seng.
“Australia is one of them. Its long-term property outlook remains strong, driven by population growth and robust consumer and business sentiment. Demand continues to outstrip supply in this market.”