Hiap Hoe proposes separate listing for Australian properties

After two well-performing years in Melbourne and Perth.

Hiap Hoe has announced a proposed spin-off of its property assets in Australia into a separately-listed entity on the Catalist board.

According to a report by OSK-DMG, the company first ventured into Australia in 2013, acquiring 3 properties in Melbourne and an office property in Perth. It has since launched its maiden overseas project in Melbourne, the Marina Tower.

Marina Tower comprises of 461 residential apartments and a 269-room hotel to be managed by Sheraton under the Four Points brand, The group has sold more than 70% of the residential units and plans to launch its second Melbourne project, 380 Lonsdale Street, in the current year.

Here’s more from OSK-DMG:

As these two Melbourne properties include hotel components, Hiap Hoe will be able to build on its hospitality business, following its success with the Zhongshan Park integrated development in Singapore. Meanwhile, 206 Bourke Street (Melbourne) and Sterling Street, Perth will be kept for recurring income, having secured these at attractive cap rates of 8.5-9%.

On the residential front, Hiap Hoe has taken several measures to mitigate its exposure to Qualifying Certificate measures, including a sale of its entire Treasure on Balmoral to its major shareholder, removing a major source of overhang.