The Australian

 

March 22, 2016 Tuesday
Australian Edition

 

Chip Eng Seng on song

 

 

Apartments: Singapore-listed developer Chip Eng Seng has bought a development site in South Melbourne as it looks to cash in on demand for more apartment projects.

 

The company has just contracted to buy a site for $52 million through a newly incorporated subsidiary, CES Gladstone. The proposed development would be worth more than $400m as it could comprise 730 units.

 

Chip Eng Seng is buying the site via a direct deal with Melbourne-headquartered BPM Corp, the Australian developer founded by Jonathan Hallinan.

 

Speaking exclusively to The Australian yesterday Mr Hallinan said he bought the site about a year ago for slightly more than $37m, when it was offloaded by MAB Corp.

 

He said Chip Eng Seng' s price " was a price that we could not say no to" . Mr Hallinan said he had spent little on the site that he bought with a development permit in place. There were other apartment sites available in Melbourne, which were more suited to his ultra luxury apartment brand, he said.

 

Situated at 15-85 Gladstone Street in South Melbourne, the 5984sq m site is in the Fishermans Bend urban renewal area 10km from Melbourne' s city centre.

 

After buying the site BPM amended the development proposal adding more apartments to the project.

 

Currently leased as a commercial car park, it now has a planning permit for 742 residential apartments over three 30-level towers, as well as associated street-level retail and car parking spaces.

 

Chip Eng Seng has been active in the Australian market for some time, having just acquired two substantial Adelaide mixed-use developments through buying private developer LGB in January.The company is also building a 71-storey building known as Tower Melbourne on Queen Street.