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Chuan Hup in JV with associate to buy and develop Perth site

CHUAN Hup Holdings on Friday said its subsidiary Ventrade Australia and associate Finbar Group have formed a joint venture (JV) company to acquire a 1,697 square metre land parcel in Perth for about A$6.5 million (S$6.1 million) and develop it.

Located at 240 Adelaide Terrace, East Perth, Western Australia, the site will be developed into approximately 115 residential apartments across 28 levels with additional lower level commercial office space.

Ownership of the JV company, Finbar Sub 106, is split 50-50 between both parties, making the JV company an associate of Chuan Hup. Working capital funding and profits from the JV will be split evenly.

Finbar will provide development management services for the land's development and will receive a management fee from 106 Pty Ltd.

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Chuan Hup said it has previously had six successful joint venture development projects with Finbar, with the latest JV allowing it to leverage Finbar's experience in property development in Western Australia.

Chuan Hup owns about 20.5 per cent of Finbar, which is listed on the Australian Securities Exchange.

The Perth site is centrally located and within walking distance from the Perth CBD (central business district), offering potential residents and investors expansive views of the Swan River and city from the upper levels, Chuan Hup added.

The JV is not expected to have material impact on net tangible assets per share or earnings per share for the company's financial year ended June 30, 2020.

Chuan Hup shares, trading cum dividend, closed up S$0.005 or 1.9 per cent to S$0.265 on Thursday.