AustraLand, CapitaLand’s Australian unit, has purchased a 1.8 hectare land parcel at a site in Northshore Hamilton in Queensland, Australia.
The acquisition price will be a combination of an upfront payment worth US$11.1 million and a revenue share through the life of the project.
The purchase price is conditional upon various approvals, which are expected to be achieved by late this year.
The site, fronting the Brisbane River, is zoned for residential use. It will initially yield 150 home units with profit contribution expected from FY 2012.
Additionally, Australand has secured options to purchase the remaining 4.5 hectares of the site, in stages. It will have the potential to supply an additional 850 houses.
The construction of the new project is expected to start next year, with the marketing campaign for the first stage of the project due to commence in September this year.