Chip Eng Seng Corporation said on Monday its wholly-owned subsidiary, CES Corporation Australia, has jointly acquired a land parcel in Perth.
The construction and property group said the latest acquisition will be placed under its new joint venture company called 242 West Coast Highway Scarborough.
The joint venture company acquired the land parcel located in Scarborough, Western Australia for A$20 million.
Executive chairman Lim Tiam Seng said CES sees attractive opportunities for the group to grow its portfolio of quality residential projects beyond Singapore, and Australia is one of them.
“Australia’s long-term property outlook remains strong, driven by population growth and robust consumer and business sentiment. Demand continues to outstrip supply in this market,” said Mr Lim.
The Scarborough project is the group’s fourth property development project in Australia. Previously, it had successfully developed two projects in Adelaide.
Earlier in March, CES had through its wholly-owned subsidiary, CES – McKenzie (Vic), been awarded the tender for a 0.2 hectare prime land parcel in the Central Business District of Melbourne, Australia for AUD$20.2 million.
The proposed Scarborough development is not expected to have any material impact on the net tangible assets and earnings per share of the group for the current financial year ending December 31.
The acquisition will be financed through internal funds and bank borrowings.
Source : Channel NewsAsia – 10 May 2010