Figtree unit to dispose of Melbourne mixed development project for A$35m

PROPERTY investment firm Figtree Holdings announced on Monday that its wholly-owned Australian subsidiary Figtree La Trobe will be selling a mixed development project, 303 La Trobe, in Melbourne for A$35 million (S$34.3 million) to an undisclosed third party.

The properties, located at 293-303 La Trobe Street, were acquired by Figtree La Trobe in 2015 for an aggregate consideration of approximately A$17.4 million for the purposes of redevelopment into the development project.

The development project is a 44-storey mixed development comprising 215 residential units, retail and cafe outlets and other recreational and communal facilities. The development project was launched in October 2016 and approximately 97 per cent of the residential units have been sold.

As at the date of this announcement, construction has not commenced.

Currently, the site comprises two freehold land parcels of approximately 671 square metres with existing 3-storey and 2-storey buildings.

According to Figtree Holdings, the proposed disposal is an opportunity for the group to realise the value of the development project earlier and will strengthen the group's cash position for future development projects that may arise.

The proposed disposal is not expected to have material impact on the earnings per share and net asset value per share of the group for the current financial year ending Dec 31, 2018. Upon completion, it is expected to contribute positively to the group's financial position and performance for the financial year ending Dec 31, 2019.