Chuan Hup Holdings' Australian subsidiary Ventrade Australia has entered into a joint venture with BHHP14, an associated company of Siera Group, to acquire and develop a land site located in Surfers Paradise, Queensland, Australia.
Siera and its group of associated companies is a boutique residential property developer and builder, specialising in medium-density housing, luxury homes, and small lot subdivisions in South-East Queensland. The Siera Group’s current portfolio comprises a mix of luxury apartments and terrace homes.
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The joint venture company (JVCo) named SG14 has been formed and has an initial issued and paid-up capital of A$100 divided into 100 ordinary shares and will be engaged in the business of multi-resident residential property development projects in South-East Queensland. Each Ventrade and BHHP14 will hold 50% of the total equity interst in SG14, thereby resulting in SG14 becoming an associated company of Chuan Hup.
SG14 will then be acquiring a 1,518 sqm land site for a consideration of A$4.65 million, excluding government taxes. The land will then be developed into a mixed-residential tower comprising approximately 83 residential apartments across 14 levels
Chuan Hup believes that this JV is a strategic opportunity for it to venture into residential property development projects in Queensland, Australia.
The joint venture development site is centrally located on the exclusive Chevron Island, situated between the heart of Surfers Paradise and the Gold Coast CBD in the suburb of Southport. The JV will enable the group to leverage on the Siera Group’s experience in residential property development in Queensland, Australia.
Under the JV, Siera will provide development management services for the development of the Land and will receive a management fee from SG14. Ventrade will then be contributing 100% of the initial working capital for SG14.
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Ventrade and BHHP14 will share the JV net profit in the ratio of 70:30, where the profits to be distributed to Ventrade may be in the form of dividends or interest payments on finance provided.
Shares in Chuan Hup closed at 22 cents on July 12.
Photo: Unsplash
