FAJARBARU Builder Group Bhd is not ruling outthe possibility of venturing into other cities in Australia.
Group executive director Datuk Seri Eric Kuan Khian Leng said Melbourne’s property market is relatively strong, with vacancy at an all-time low of less than two per cent.
He also said there is growing demand for quality properties from the influx of new arrivals and locals.“I believe the Australian property market will continue to provide a healthy income for Fajarbaru in the coming years.”
Fajarbaru completed its first project called “Gardenhill” in Melbourne last year.
The project, which has a gross development value (GDV) of A$77 million (RM232 million), was developed in a joint venture with Beulah International.
Gardenhill contributed about RM198 million to the group’s revenue in the second half of its financial year ended June 30 2017.
Fajarbaru and Beulah are now developing Paragon in Melbourne, together with KHK Group. This projectfeatures 227 luxury apartments, with prices starting from A$480,000 for each unit. The building has 48 levels and a GDV of A$200 million.
The target completion is in the second half of 2020, said Kuan after signing a funding facility agreement with Malayan Banking Bhd (Maybank) last month.
lose to A$100 million financing from Maybank.
The agreement was signed between the development’s special-purpose vehicle (SPV) company, 320 Queen Street Pty Ltd, and Maybank.
Fajarbaru holds 22.22 per cent stake in the SPV company while KHK owns 35 per cent and Beulah the rest.
Beulah managing director Chan Jiaheng said almost 90 per cent of Paragon has been sold and one-third of the buyers are Malaysians.
He said the selling point for Paragon is having Australia’s first elevated indoor forest.
“The international support highlights the potential overseas investors see in Melbourne.”
Fajarbaru is moving to its third development project in Melbourne with Beulah.
It hasa49 per cent stake in Beulah Northcote Land Pty Ltd, which is the project developer.
The project will have at least 15 doublestorey townhouses with an estimated GDV of A$33 million.