BY Pavither Sidhu
Following its successful previous launches in Australia, SP Setia Bhd forges on Down Under with its latest prime land acquisition in Melbourne.
The developer has entered into a conditional contract of sale with Australia’s Telstra Corp Ltd to buy 1.02 acres of freehold land in the northeast precinct of Melbourne’s central business district (CBD) for AU$101 million (RM302 million), translating to AU$2,273 (RM6,816) per sq ft.
The site, 308 Exhibition Street, is the largest east-end CBD development site in Melbourne to be sold in over a decade. It will be transformed into a mixed development project with an estimated gross development value of RM1.9 billion.
Positioned on the corner of La Trobe Street and Exhibition Street, the site faces the 160-acre UNESCO World Heritage-listed Carlton Gardens and Royal Exhibition Centre, a vibrant Chinatown precinct, the historic Greek precinct as well as Melbourne’s Little Italy known as Lygon St.
Neighbouring communities include the Parliament House, Melbourne University, RMIT and several hospitals as well as nearby amenities such as rails, trams, bus routes and freeways.
SP Setia intends to transform the land into a development with a “combination of multi-level retail, prime A-grade office space and luxurious apartment towers” and will set a precedent for premier developments across Melbourne and revolutionise its urban landscape.
Slated to be launched by the second half of 2017, this acquisition reinforces Setia’s presence as a prominent property developer in Australia, giving it an opportunity to deliver another development par excellence in Melbourne.
Meanwhile, Maybank IB Research said that SP Setia’s latest prime land acquisition is a positive move as it marks the group’s landbanking activity in two years. The research house estimates a development nett profit of RM333.5 million for Setia from the venture.
This marks SP Setia’s fifth acquisition in Australia, right after the recent acquisition of the Prahran, Melbourne site, which was announced just recently.– Pavither Sidhu.