In a bid to cash in on the growing demand for Australian property, Far East Organization (FEO) has started construction on a A$200 million residential project in Melbourne’s northeast around 30 years after acquiring part of the site, reported the media.
FEO first acquired part of the land in St Helena in the mid-1980s and subsequently bought the adjacent plot in 2013, bringing the site’s total area to 19ha. The group plans to build around 250 housing units on the site.
With the sales process set to begin by year-end, the project marks the company’s first foray into the residential market there. FEO had been purchasing several office buildings in Sydney over the last two years which were earmarked to be developed into apartment towers in the long term.
According to Fang Ai Lian, chairwoman of FEO’s Australian division, the company is on the lookout for more opportunities in the commercial, retail, hotel and residential sectors, underscoring its plan to be a long-term player.
Moreover, Fang did not rule out the possibility of listing its local operations on the Australian Securities Exchange, citing some of its listed businesses in Singapore like Far East Hospitality Trust.
She also expressed her support on the Australian authorities attempt to curb investment in residential property through policies such as stricter rules on mortgage lending and application fees for overseas home buyers.
“It is important that you have a long-term mentality when you operate a real estate business because you can have cycles sometimes where intervention is needed,” noted Fang.
Image: Aerial view of the Melbourne skyline. (by David Wallace; Wikimedia Commons)
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
