Singapore-listed property developer Hatten Land has made its foray into the Australian market, purchasing a parcel of land in Melbourne’s Southbank for $15.8 million.
The purchase option, taken out with Sunvale Development, marks the Malaysian-based group’s first expansion into the Australian property market.
Sunvale, who purchased the 65-71 Haig Street site in 2014, secured approval for the development of a multi-storey building comprising of dwellings, retail premises and offices with an estimated gross floor area of 25,000 square metres.
Sunvale lodged plans soon after for a 170 metre high residential tower, with its 55-storeys to include 361 units.
Hatten Land intends to develop a mixed-use project that will comprise retail and hospitality units.
“Melbourne has been an increasingly popular overseas property destination for high-net worth Singaporeans and Malaysians who favour the city for its good yield, liquid markets, and promising prospects for rental yield,” Hatten Land managing director Dato Colin Tan said.
Tan also pointed to Australia's four-season lifestyle that can be found significantly closer to Singapore, compared to Europe.
The group has also made it clear that the core business focus will remain in Malaysia, but were exploring international initiatives to create value-accretive growth opportunities to enhance shareholder value.
Hatten's current pipeline comprises three integrated mixed-use development projects and retail malls in Melaka and Seremban in Malaysia.
Last year, Hatten announced plans to build a $70 million water park, the largest in Melaka at 40,000 square metres.