Singaporean property giant Roxy-Pacific Holdings Limited has announced a joint venture with superannuation fund Hostplus to acquire a land parcel in North Fremantle, Perth, Australia, for $59 million.
The company said it had acquired the 4.4-hectare site as part of its geographical diversification strategy.
The joint venture partners intend to rezone the industrial site – located next to Leighton beach and a train station connected directly to Perth’s central business district – for residential and commercial uses.
Roxy NF Pty Ltd, a subsidiary of Roxy-Pacific, will provide 40 per cent of the equity for the acquisition. The remaining 60 per cent will be provided by Hostplus, which has been represented in this joint venture by Australia’s largest private property fund manager, ISPT.
Roxy-Pacific and Hostplus invested together on similar terms earlier this month, when they acquired two adjoining development sites in South Brisbane.
Development approval has been obtained to develop two residential buildings on the sites, comprising 432 units with retail, restaurant and office facilities on its ground level.
Mr Teo Hong Lim, Executive Chairman and CEO of Roxy-Pacific, said the Fremantle acquisition reflected the company's positive view of the Australian property market.
“This acquisition will be Roxy-Pacific’s fourth investment in Australia, demonstrating our confidence in the Australian property market," Mr Teo said.
"Our strategic partners in Australia – namely, Hostplus, as represented by ISPT, and Pindan... that identified and secured both sites and will provide development management services to the joint ventures – have extensive knowledge and network in the market.”
Ben Hopkins, Director of Roxy-Pacific Australia, said: “Roxy-Pacific is happy to be partnering with a major Industry Super Fund in some of their development opportunities in Australia.""This will add to our existing acquisition and help build our presence in Australia.”
Apart from development sites in North Fremantle and South Brisbane, Roxy-Pacific has invested in a hotel development site and an office building in central Perth and Sydney, respectively.