- The group has been actively looking into investing in Perth for some time due to the city’s strong fundamentals underpinning the economy, a lower housing entry point and some of the best prospects for capital gains in Australia.
KUALA LUMPUR (Aug 15): UEM Sunrise Bhd has purchased two plots of land measuring 1.22 acres in Perth, Australia, for A$22.19 million, or approximately RM66.39 million.
According to a bourse filing on Tuesday (Aug 15), the property developer's indirect wholly owned subsidiary UEM Sunrise (Subiaco East) Pty Ltd had acted as a trustee for another indirect wholly owned subsidiary, UEM Sunrise (Subiaco East) Unit Trust, to enter into a contract of sale with the Western Australia Land Authority trading as DevelopmentWA — Western Australia’s state government central land and development agency entrusted to lead and oversee the Subiaco East redevelopment.
The upcoming mixed-use residential precinct will comprise the delivery of dual towers featuring approximately 430 apartments across both plots of land, alongside 12% affordable housing, though these are subject to development approval with further details to be determined.
Construction is expected to commence in 2026 with a completion target in 2029, the group said, adding that the apartment buildings will be Green Star Buildings certified and expected to generate an estimated Gross Development Value of A$450 million (equivalent to RM1.35 billion based on the exchange rate published by Bank Negara Malaysia dated Aug 14, 2023, at which the purchase price was based upon).
The land, which is currently vacant, directly fronts the refurbished Subiaco Oval grounds across from the Bob Hawke College and offers views of the Perth Central Business District, Swan River, Kings Park and Lake Monger.
The group said there is currently no development permit on the land, although the design guidelines have been approved for a maximum height of 30- and 11-storey apartment buildings.
As for the payment details, 10% of the purchase price is to be paid to DevelopmentWA upon signing of the contract on Tuesday while the 90% balance is expected to be fully settled in the first quarter of 2025.
“We are delighted to work with DevelopmentWA on this landmark project as our first venture in Western Australia’s residential market,” said UEM Sunrise chief executive officer Sufian Abdullah.
He added that the group has been actively looking into investing in Perth for some time due to the city’s strong fundamentals underpinning the economy, a lower housing entry point and some of the best prospects for capital gains in Australia.
“This development represents a fantastic opportunity to deliver new housing supply at scale and generate greater investment for the city. We look forward to working with DevelopmentWA, local stakeholders and the community on next steps for this exciting project,” Sufian added.
“Having delivered over 1,650 apartments in Melbourne, UEM Sunrise has demonstrated its commitment to delivering diverse, quality homes in Australia. The design concepts presented for Lots 1 and 2 at The Oval incorporate elements that celebrate the rich history of Subiaco and will complement the public realm around the iconic Subiaco Oval,” said DevelopmentWA acting chief executive officer Dean Mudford.
Looking to buy a home? Discover exclusive rewards and vouchers for your dream home when you sign in to EdgeProp START.