Chuan Hup in JV with Siera associate to buy and develop Queensland site

CHUAN Hup Holdings on Wednesday (Dec 22) said its subsidiary will enter a joint venture (JV) to acquire a 964 square metre land site located in Queensland for A$7.6 million (S$7.4 million) and develop it.

The wholly-owned subsidiary, Ventrade Australia, will take a 50 per cent stake in the JV company SG15 Pty Ltd, making the JV company an associate of Chuan Hup, the group said in a statement. It will partner with an associated company of Siera Group, BHHP15 Pty Ltd.

Located at 3 Vista Street Surfers Paradise, the site will be developed into a mixed-residential tower comprising approximately 60 residential apartments across 20 levels. The site is adjacent to Surfers Paradise Beach in Queensland, Australia and situated on the southern end of Surfers Paradise on the border of Broadbeach.

Ventrade Australia will contribute 100 per cent of the initial working capital of SG15, while Siera will provide development management services for the land's development and will receive a management fee from SG15.

Ventrade Australia and BHHP15 will share the net profit of the JV in the ratio of 70:30, where the profits to be distributed to Ventrade Australia may be in the form of dividends or interest payments on finance provided.

The JV is not expected to have any material impact on the net tangible assets per share or earnings per share of the Chuan Hup for the financial year ending June 30, 2022, the group said.

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Chuan Hup said it believes that the JV is a good opportunity for the group to venture into another residential property development project in Queensland.

Shares of Chuan Hup closed at S$0.235 before the announcement on Wednesday, up 1.5 Singapore cents or 6.8 per cent.