Salcon to launch RM682mil residential project Down Under


Salcon

KUALA LUMPUR: Salcon Bhd’s indirect unit Salcon Development (Australia) Pty Ltd (SDA) has bought a 2,125 sq m land in Victoria, Australia. which it plans to develop into a residential development with an estimated gross development value of A$230mil (RM682mil).

In a filing with Bursa Malaysia, the engineering and property development group said SDA, which is wholly owned by Salcon’s unit Salcon Development Sdn Bhd, had signed a contract on Wednesday to buy the freehold land at 16-22 Claremont Street, South Yarra -- together with the plant, equipment and chattels owned by the vendor K & E Rogers Pty Ltd -- for A$37.88mil (RM112.33mil).

The property consists of a two-storey office building with an occupancy rate of 83%, plus carpark.

Salcon, whose revenue currently comes mainly from water and wastewater treatment plant business, proposed to build 336 residential units with a retail podium space on the land. 

“The South Yarra suburb of Melbourne is situated approximately 4km south-east of the Melbourne Central Business District. The property is strategically positioned in South Yarra, adjacent to the Chapel Street and Toorak Road shopping strips, as well as many of their associated amenities within a 1km/15-minute walking radius,” it noted.

Salcon said that given the general slowing down in the Malaysian property market, the group sought to diversify its property development portfolio overseas.

“This (land) acquisition will allow the group the opportunity to establish a presence in the Australia property market, where the demand for Australian properties has remained strong in key cities such as Melbourne, in particular in the inner city areas,” it added.

According to Salcon, the group may seek external financing to fund the proposed acquisition as well as the future development cost for the property.

Salcon’s maiden property project, a 21-storey building in Selayang with 280 units of small office home office known as res280, is expected to be completed this year.

Salcon shares closed unchanged at 58 sen on Thursday with 888,100 shares traded.

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