Lian Beng Group and KSH Holdings unveil mixed pproperty project in Brisbane

It will have a residential and a hotel component.

Mainboard-listed firms KSH Holdings and Lian Beng Group yesterday revealed that they have joined a consortium to co-develop a mixed use asset in Fortitude Valley, Brisbane Australia.

The project consists of a residential component and a hotel development, and will be located one kilometer away from Brisbane’s Central Business District.

The residential component will comprise 324 units to be built over two phases while the hotel component comprises 198 rooms to be completed in 2016/2017.

According to OCBC, the project consists of two different joint venture structures: the residential component is led by Australian counterpart, Marvel Investments Pty Ltd, who will hold an effective interest of 67.0%, while the rest is held by the Heeton, Lian Beng and KSH consortium with effective interests of 18.15%, 9.90% & 4.95% respectively.

The hotel development joint venture will comprise Heeton and Lian Beng holding effective interests of 70% and 30% respectively.

“Pending more details about development financing and schedule, we conservatively assume neutral accretion for this project and keep our fair value estimates unchanged for KSH and Lian Beng for now,” OCBC noted.