Employees Provident Fund (EPF) has acquired a 49 percent stake in Yarra Park City Pty Ltd (YPC), which owns the rights to a mixed-use development worth over RM9 billion in Melbourne, for A$154 million (RM514 million), reported The Star.
OSK subsidiary PJ Development Holdings Bhd (PJD) owns the other 51 percent interest in YPC.
Marking EPF’s second development venture overseas after London’s Battersea project, the five-acre Melbourne Square project met the long-term objectives of the fund and would also serve as a good addition to its overseas portfolio, said Datuk Shahril Ridza Ridzuan, chief executive officer of EPF.
“The increasing demand for residential property in Melbourne will enable the EPF to generate returns for its members,” he noted.
OSK revealed that the Melbourne Square development would see a former carpark transform into a dynamic mixed-use community and retail centre, with a gross development value of A$2.8 billion (RM9.4 billion).
Notably, the project was one of the last sizeable prime land available in Melbourne.
“We are delighted to partner the EPF on this exciting project,” said Tan Sri Ong Leong Huat, CEO and group managing director of OSK.
“The project will mark OSK’s maiden foray into Melbourne, whose growing population and vibrant property market have received much interest from international developers in recent years, including several established Malaysian developers.”
To be developed in five stages over a period of eight to 10 years, Melbourne Square project comprises four residential blocks, a hotel/serviced apartment tower, an office tower and various street-level retail lots.
With a GDV of A$900 million (RM3 billion), the residential towers will feature over 1,000 apartment units.
In a Bursa Malaysia filing, OSK said PJD inked a share sale agreement with EPF to dispose its entire interest in Yarra Development Holdings (Australia) Sdn Bhd (Yarra Holdings), which is a fully-owned unit of PJD.
Yarra Australia Development Pty Ltd subsequently entered into a share subscription agreement with YPC to subscribe to 49 percent of its entire enlarged paid-up share capital.
OSK expects the disposal and YPC subscription to “increase the net earnings of the OSK group by A$38.2 million (RM129 million) and a foreign-exchange gain on the total investment in YPC of RM49.2 million, which was previously recorded as foreign-exchange reserve; or a total increase of 12.86 sen per share for the financial year ending 31 December 2017”.
EPF’s property investment also includes:
1. Lucentia Residences, Bukit Bintang City Center
Image sourced from The Star
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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