Catalist-listed HS Optimus (formerly KLW Holdings) has entered into a non-binding memorandum of understanding (MOU) with Australian property development and project management firm, Fathom Developments. The MOU was signed on July 7 by HS Optimus’ wholly-owned subsidiary, Ambertree Vic Mel (Lincoln).
Under the MOU, HS Optimus will collaborate with and grant Fathom a period of exclusivity to apply for the relevant planning permits and to explore opportunities to jointly develop HS Optimus’ property located at 23-31 Lincoln Square South, Carlton, into a purpose-built student accommodation (PBSA).
The PBSA aims to provide modern and affordable accommodation to students studying in Melbourne, particularly the students of the University of Melbourne and the Royal Melbourne Institute of Technology (RMIT). Both universities are located near the building.
The property, an existing heritage building with a lettable area of around 3,745 sq m (40,310.84 sq ft), sits on freehold land of around 906 sqm. The building has not been tenanted since its extensive refurbishment was completed in 2021.
Apart from its proximity to the University of Melbourne and RMIT, the property is located near Melbourne’s central business district (CBD), Carlton, the iconic Lygon Street, and the surrounding suburbs of Fitzroy, Carlton North and Brunswick.
According to HS Optimus, the group has been looking at ways to enhance the revenue streams from its property investment and property development business, especially in Australia. It intends to proceed with the next step, which is to obtain the necessary planning permits to turn the building into a PBSA.
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Fathom comes with an established track record in planning, project management and construction superintendency in Australia. It also has experience in obtaining approvals for and development of many projects of a similar type and scale within the City of Melbourne and Victoria, adds HS Optimus in its July 7 statement.
“We are pleased to enter into this MOU with Fathom, and we are of the view that its track record, experience and skillsets can help the Company in obtaining the necessary planning permits in Melbourne,” says Chia Fook Sam, executive director and chief operating officer (COO) of HS Optimus.
“We also believe that the city of Melbourne’s global reputation and one of the world’s most liveable cities and it’s excellent educational institutions have and will continue be an attractive market for PBSA,” he adds.
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The MOU is not expected to have a material impact on HS Optimus’ earnings per share (EPS) and net tangible assets (NTA) per share for the current FY2025 ending March 31, 2025.
Shares in HS Optimus closed flat at 0.3 cents on July 5.
