Singapore firms strike realty deals in Australia

The Australia attraction for SGX-listed property firms shows no signs of slowing down. The last week has seen several local firms like Wee Hur Holdings and TEE Land, enter deals Down Under. The appetite of local companies to acquire assets in Australia is set to continue in 2015.

A recent report by CBRE said that Singapore has been the top investor in Australia’s real estate market, having pumped $6.6 billion since 2005.

Wee Hur Holdings acquires Brisbane land for S$55.2m

Wee Hur Holdings said that it has bought a 1.7 hectare plot in the city of Brisbane for approximately A$51.3 million (approximately S$55.2 million) through its wholly-owned Australian subsidiary, Wee Hur (Buranda) Pty Ltd. This marks the company’s first foray Down Under.

It also plans to acquire an additional 2,194 square meters of land for A$5.2 million (approximately S$5.6 million) at a later date, bringing the total acquisition amount to A$56.5 million (approximately S$60.8 million) and the total land area to 1.91 hectares.

The plot of land is located at Woolloongabba, suburb of Brisbane. The company plans to use this land for a mixed-use development comprising residential, retail and office units. The development will be carried out in several phases and construction is expected to commence in the third quarter of 2015.

The entire acquisition is funded by internal resources. As of September 30, the company had S$265.5 million in cash in its books.

Wee Hur shares closed flat 37.5 cents Tuesday (December 30).

TEE Land buys Sydney hotel for S$24.89m

TTE Land said it has bought a hotel in Sydney for S$24.89 million.

The deal was done through its subsidiary TEE Hospitality, which in turn teamed up with Peter & Jan Clark Pty Ltd and and Kenmooreland Pte Ltd to establish a joint venture company, Potts Point Hospitality Pty Ltd.

TEE Land will have a 55 per cent equity interest in the JV, while Peter & Jan Clark Pty Ltd and Kenmooreland Pte Ltd will hold 10 per cent and 35 per cent respectively.

This also marks the second time that TTE Land in teaming with these JV partners. In May 2014, TTE Land had formed a JV with the same two partners to buy Quality Hotel CKSSydney Airport, for A$23.88 million.

The latest deal sees Potts acquire an existing 4-star boutique hotel with 76 hotel rooms and three meeting rooms, located at 2-14 Kings Road from K C Property Pty Ltd. The acquisition is expected to be completed on 27 February 2015. This four-star Diamant Hotel, is close to the King Cross train station and the city’s central business district.

“The acquisition is part of the group’s strategy to build up a portfolio of recurring income generating assets in developed markets such as Australia and New Zealand that provide short to mid-term accommodation to end users,” the company said in a statement.

Prior to this deal, TEE Land, in November 2014, had bought the Thistle Guest House in Christchurch for NZ$780,000.

TEE Land closed flat at 28.5 cents December 30 (Tuesday).

Stamford Land to sell Australia property for S$54.8 million

SGX-listed Stamford Land Corporation Ltd said it had reached a deal to sell its New South Wales property to an Australian real estate fund for A$51 million (S$54.8 million). The company had acquired this10,132 square metre site for A$23.7m less than a year ago.

The sale is expected to be completed by end February 2015. The Australian real estate fund has already paid A$5.1 million and the remaining A$45.9 million to be paid on completion of the deal.

In November 2014, the net book value of the property was A$28.1 million. The deal will see Stamford Land have an after-tax gain of A$15.7 million for the financial year ending March 2015.

“The disposal is attractive given the current property market conditions in Australia. It represents an immediate crystallization of returns not dissimilar to development margins without related development risks,” said Stamford Land in a filing to the Singapore Exchange.

Stanford Land closed 55 cents Tuesday (December 30).

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.