Hiap Hoe to pursue JVs with Probuild in Australia

MOU signed; binding agreements within a year.

Singapore Mainboard-listed Hiap Hoe Limited (Hiap Hoe) announced that it has entered into a memorandum of understanding (MOU) with Probuild Construction (Aust) Pty Ltd (Probuild), to pursue joint-venture opportunities for the Group’s recently acquired sites at 6 – 22 Pearl River Road and 380 Lonsdale Street in Australia.

Hiap Hoe expects to formalise this partnership with Probuild with binding agreements within the next 12 months.

Alongside the signing of the MOU, Hiap Hoe has also announced that formal completion of its A$43.8 million acquisition of 380 Lonsdale Street; and unveiled plans for the development of two towers of 51 and 47 storeys on top of a 5 storey podium, with an option to go up to 59 storeys. The proposed development will feature 658 apartments, 1,344 sq m of retail space, a 399 space car parking facility as well as a 350-room upper-scale hotel.

Mr Teo Ho Beng, Hiap Hoe’s Executive Chairman and Chief Executive Officer, said, “We are delighted to explore a potential joint venture with Probuild, a reputable market leader in Australia’s construction industry, as we embark on our strategic expansion into Australia’s property market. With our established track record in creating unsurpassed signature developments of premium quality, coupled with Probuild’s strong reputation, expertise and in-depth knowledge of the local market, we are confident that our collaborative efforts will serve as the cornerstone of Hiap Hoe’s solid growth in Australia.”

“Hiap Hoe is focused on selectively acquiring and enhancing quality, well-located land sites with excellent investment prospects. Our continuing success in Singapore bears testimony to our ability and commitment to enhance value for shareholders, who will now stand to benefit from our strategic expansion into regional markets. The completion of our acquisition of 380 Lonsdale Street and our plans to include a hotel component will not only enhance the returns from this development, it will also further expand our hospitality portfolio, which presently includes two hotels in Singapore – Ramada Singapore and Days Hotel Singapore at Zhongshan Park,” Mr. Teo commented.

“Our proposed development will be an iconic hospitality cum commercial/residential tower that sits strategically in the heart of Melbourne’s CBD, within a strong catchment area that enjoys high visitor traffic from both tourists and business travellers. We are excited with the redevelopment potential of this site and the opportunity to enliven the neighbourhood with a premium integrated lifestyle development. Looking ahead, we will continue to strategically seek out real estate investment opportunities in both Singapore and the region,” Mr. Teo added.