SINGAPORE (Mar 6): Hatten Land intends to foray into the Australian real estate market by acquiring a land parcel in Southbank, Melbourne, from Australia’s Sundale Developments for a consideration of not more than A$15.8 million ($15.25 million).
The land has a planning permit to develop a multi-storey building comprising dwellings, retail premises and offices with an estimated gross floor area (GFA) of 25,000 sq m.
Hatten however intends to develop a mixed-use development on the land, which may comprise retail and hospitality units as well.
Under the exclusive land purchase option agreement it signed with Sundale Developments, Hatten’s exercise of its option to acquire the land will depend on various conditions and factors, including the issuance of a revised planning permit and satisfactory due diligence.
Colin Tan, executive chairman and managing director of Hatten, sees the acquisition as one that will create value-accretive growth opportunities for the group to enhance shareholder value.
“We observed that Melbourne has been an increasingly popular overseas property destination for high net-worth Singaporeans and Malaysians who favour the city for its good yield, liquid markets and promising prospects for rental yield,” says Tan.
“Melbourne is one of the top destinations in the world for business, vacations, multi-home ownerships and education, therefore we are optimistic on the prospects of the market demand for this mixed development project which comprises a diverse range of property offerings including offices, retail and residential units,” he adds.
Shares in Hatten closed 2.63% lower at 11 cents on Wednesday.
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