Chuan Hup Holdings’ wholly-owned Australian subsidiary, Ventrade Australia, has entered into a joint venture (JV) with BHHP17 Pty Ltd to acquire and develop a site located at 303 Golden Four Drive, Bilinga, Queensland. Both companies have established a JV company (JVCo) named SG17.
BHHP17 is an associated company of boutique residential property developer and builder, Siera Property Group.
SG17 has an initial and paid-up capital of A$100 ($90.63) split into 100 ordinary shares. It will be engaged in the business of multi-resident residential property development projects in South-East Queensland. Ventrade Australia and BHHP17 each have a 50% stake in SG17.
According to Chuan Hup Holdings, the board believes that the JV will enable the group to “capture the opportunities with the rising demand for residential property in Queensland, Australia”.
The development site has direct access to the beach and is well located across the southern beaches of Gold Coast, in Queensland.
The JVCo, SG17, will acquire a 1,214 sqm (13,067.39 sq ft) at 303 Golden Four Drive, Bilinga, Queensland for a purchase price of A$16 million, excluding government taxes. The property comes with obtained approval to build an eleven-storey residential building comprising 19 residential apartments.
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Through the JVCo, Ventrade Australia and BHHP17 Pty Ltd will share the net profit in the ratio of 70:30, where the profits to be distributed to Ventrade Australia may be in the form of dividends or interest payments on finance provided.
Shares in Chuan Hup closed flat at 21.5 cents on Dec 23.
