CITY Developments Ltd (CDL) is re-entering the Australian residential sector with a A$275 million (S$282 million) project in Brisbane's South Bank precinct.
The developer said in a Singapore Exchange filing before the market opened that on Thursday that it will partner Australian developers Abacus Property Group and KPG Capital in developing the residential land site.
CDL and Abacus will jointly provide the majority of equity funding through a preferred equity interest of about A$30 million each.
The project is on a 2,733-square-metre freehold site and will be developed into two 30-storey towers that will accommodate 472 apartments with a gross development value of about A$275 million, CDL 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," said Kwek Leng Beng, CDL's executive chairman.
"Brisbane's residential market remains highly attractive due to its affordability when compared to other major cities in Australia. Both domestic and international buyers are looking to Brisbane for greater value and higher yield."
Early works have started for the site and both towers have been launched for pre-sales.
"Due to the project's exceptional location and reasonable pricing, the sales launch has met with a very positive response," CDL said.
On Wednesday, CDL's counter closed three Singapore cents higher at S$7.18.