KUALA LUMPUR — Salcon Bhd announced that Salcon Development (Australia) Pty Ltd (SDA) has proposed to acquire a piece of land located at 16-22 Claremont Street, South Yarra, Victoria, Australia for AUD37.88 million or RM113.935 million from K & E Rogers Pty Ltd.
In a filing to Bursa Malaysia, it said SDA had entered into a contract sale with the vendor yesterday to acquire the land measuring 2,125 square metres.
SDA is wholly-owned by Salcon Development Sdn Bhd, which in turn is a wholly-owned subsidary of Salcon.
Salcon said the acquisition would allow the group to establish a presence in the Australian property market where demand had remained strong in key cities such as Melbourne, of which the South Yarra suburb is about 4km away.
The group is proposing to develop the property into a residential development comprising 336 residential units with retail podium space with an estimated gross development value of AUD230 million.
The board opined that the proposed acquisition, to be completed by the last quarter of 2016, was in the best interest of the company.