Singapore’s CDL to invest A$275m in Brisbane residential project

Visual of City Developments Limited homepage. December 2015.

Singapore-based property major City Developments Limited (CDL) is re-entering the Australian residential market via a partnership with Australian developers Abacus Property Group and KPG Capital Partners,to develop a prime residential land site in Brisbane’s South Bank precinct, the company announced.

CDL and Abacus will jointly provide the majority of equity funding via a preferred equity interest of about A$30 million (US$21.8 million) each.

The residential development is located at Merivale Street in South Brisbane and situated on a 2733 square metre freehold site, which will be developed into two 30-storey towers possessing a total of 472 apartments, with gross development value estimated at A$275 million (US$200.6 million). The site also is in close proximity to the South Brisbane Train Station and major universities; the University of Queensland, Queensland University of Technology and Southbank Institute of Technology.

“The future plans for South Brisbane are highly promising with over A$5 billion of proposed infrastructure investment, further boosting its reputation as Brisbane’s foremost entertainment, cultural, commercial and education precinct,” noted CDL, which has commenced early development works and  launched pre-sales for both towers.

In an official statement, CDL executive chairman Kwek Leng Beng said, “Our re-entry into Australia’s residential market is in line with CDL’s overseas expansion strategy, which we announced two years ago to supplement our existing Singapore operations. Brisbane’s residential market remains highly attractive due to its affordability when compared to other major cities in Australia.”

Both domestic and international buyers were looking at Brisbane’s property market for greater value and higher yields, with Brisbane’s housing market amongst the fastest growing in Australia. CDL has boosted its overseas exposure since 2013, since Singapore’s government introduced regulations to cool the property market in Singapore. The investment reflects a broader trend of Singaporean investment in Australian housing.

Known for luxury properties, CDL subsidiary Millennium & Copthorne Hotels launched a luxury residential project in Sydney’s Potts Point neighbourhood in 2003. M&C’s subsidiary, CDL Hospitality Trusts, currently maintains a portfolio of five hotels in Australia – Novotel Brisbane, Mercure Brisbane, Ibis Brisbane, Mercure Perth and Ibis Perth.

Also Read: Singapore: Roxy-Pacific, Ascendas acquire properties in Australia

Singapore: GLP completes acquistion of 15.5% stake in China’s largest warehouse logistics provider

Singapore Reporter/s

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

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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.