Chuan Hup Holdings’ wholly-owned Australian subsidiary, Ventrade Australia, has entered into a joint venture with BHHP15, an associated company of Siera Group, to acquire and develop a development land site located in Surfers Paradise, Queensland.
Siera is a boutique residential property developer and builder, specialising in medium-density housing, luxury homes, and small lot subdivisions in South-East Queensland. Established in Brisbane in 2014, the Siera Group has developed more than 70 residential dwellings in key growth markets in South-East Queensland. The Siera Group’s current portfolio comprises a mix of luxury apartments and terrace homes.
The JV company, SG15, has an initial issued and paid-up capital of A$100 divided into 100 ordinary shares and will be engaged in the business of multi-resident residential property development projects in South-East Queensland. Ventrade Australia and BHHP15 each hold 50% of the total equity interest in SG15, thereby resulting in SG15 becoming an associated company of Chuan Hup.
Under this JV, Siera will provide development management services for the development of the land and will receive a management fee from SG15. Meanwhile, Ventrade Australia will contribute 100% of the initial working capital of SG15.
The group believe that this JV is a good opportunity for it to venture into another residential property development project in Queensland, Australia. The joint venture development site is well located adjacent to Surfers Paradise Beach, situated on the southern end of Surfers Paradise on the border of Broadbeach.
The JVCo will acquire a 964 sqm land site for a purchase price of A$7.56 million, excluding government taxes. The land will be developed into a mixed-residential tower comprising approximately 60 residential apartments across 20 levels.
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Ventrade Australia and BHHP15 will share the JV net profit in the ratio of 70:30, where the profits to be distributed to Ventrade Australia may be in the form of dividends or interest payments on finance provided.
Shares in Chuan Hup closed at 24 cents on Dec 22.
