SINGAPORE: City Developments Ltd (CDL) said Thursday (Dec 10) it is re-entering the Australian residential market after a hiatus of more than 10 years, and would invest in a A$275 million (S$282 million) housing project in Brisbane.

Together with leading Australian developers, Abacus Property Group and KPG Capital, CDL will jointly develop a prime residential land site in Brisbane’s highly sought after South Bank precinct, it said.

The project is situated on a 29,417.77 sqft freehold site and will be developed into two 30-storey towers with 472 apartments.

“Our re-entry into Australia’s residential market is in line with CDL’s overseas expansion strategy, which we announced two years ago to supplement our existing Singapore operations,” said Mr Kwek Leng Beng, CDL’s Executive Chairman. “Brisbane’s residential market remains highly attractive due to its affordability when compared to other major cities in Australia.”

Early works have commenced for the site and both towers have been launched for pre-sales.

“Due to the project’s exceptional location and reasonable pricing, the sales launch has met with a very positive response,” CDL said.

The site of the project is located close to the South Brisbane Train Station and major universities such as the University of Queensland, Queensland University of Technology and Southbank Institute of Technology.

CDL and its subsidiaries are not new to the Australian property market. In 2003, CDL’s London-listed subsidiary, Millennium & Copthorne Hotels (M&C), launched a luxury residential project in Sydney’s Potts Point district.

M&C’s subsidiary, CDL Hospitality Trusts, currently has five hotels in Australia – Novotel Brisbane, Mercure Brisbane, Ibis Brisbane, Mercure Perth and Ibis Perth.

Until 2004, CDL, through a subsidiary, owned Birkenhead Point Shopping Centre & Marina, Sydney’s largest outlet centre in Drummoyne.